Antofagasta Annual Report 2015

Antofagasta plc
Annual report and financial statements 2015
Introduction
Antofagasta is a Chilean copper mining group

with significant by-product production and
interests in transport.
The Group creates value for its stakeholders through the
discovery, development and operation of copper mining assets.
The Group is committed to generating value in a safe and
sustainable way throughout the commodity cycle.
For further information on the mining lifecycle, please see pages 12 to 18.
Throughout this report our business model diagram below will indicate which area of our value chain is related to the narrative.
INPUTS
EXPLORATION
Inside this report
EVALUATION
CONSTRUCTION
EXTRACTION
PROCESSING
MARKETING
RESTORATION
OUTPUTS
01
11
69
117
183
Overview
Strategic report
Governance
Financial statements
Other information
2015 Highlights
01
The business
02
Performance highlights
04
Letter from the Chairman
05
Statement from the CEO
08
Business model
12
Creating value through

the mining lifecycle
12
Key inputs and cost base
19
Key relationships
The marketplace
22
25
Strategy for the

mining business
28
Key performance
indicators
30
Risk management
32
Long-term
viability statement
38
Operational review
39
Mining division
39
The existing core business 40

Growth projects
and opportunities
Transport
48
52
Managing a
sustainable business
53
Financial review
64
Results
64
Revenue
65
Cash flows
67
Financial position
68
Cautionary statement about

forward-looking statements 68
Corporate
Governance Report
70
Leadership
72
How the Board and its

Committees operate
72
Board of Directors
74
Executive Committee
77
Effectiveness
The Board in more detail
79
79
Information and
professional development 82
Performance evaluation
Accountability
Board Committees
84
85
85
Audit and Risk Committee 86

Nomination and
Governance Committee
90
Sustainability
and Stakeholder
Management Committee
93
Projects Committee
95
Remuneration
96
Annual Statement by
the Chairman of the
Remuneration and Talent
96
Summary of Directors
Remuneration Policy
98
Annual Report on
Remuneration 2015
99
Relations with shareholders 112

Directors Report
114
Statement of Directors
Responsibilities
116
Independent
auditors report
118
Five-year summary
184
Ore reserves and mineral

resources estimates
Consolidated
income statement
122
186
Mining production
and sales, cash cost
reconciliation, transport
andwater statistics
Consolidated statement
of comprehensive income
123
Consolidated statement
of changes in equity
123
Glossary and definitions
194
197
Consolidated balance sheet 124
Shareholder information
200
Consolidated cash
flow statement
125
Directors and advisors
ibc
Notes to the
financial statements
126
Parent Company
179
2015 Highlights
For more information go to Financial review.
141
15
704.8
12
13
14
630.3
721.2
Copper production
11
11
142
11
12
152
1.50
1.43
1.36
Net cash costs for the year, 4.9%

higher than 2014 as cost savings
and lower input prices were more
than offset bylower production.
13
Net cash costs
1.03
/lb
1.02
$1.50
12
0.6
42.8
66.9
105.2
13
14
15
1 Restated.
2 From continuing operations.
Antofagasta plc 01
OTHER INFORMATION
Earnings per share fell 98.6% to

0.6 cents per share due to lower
realised prices, sales volumes and
higher unit operating costs.
Earnings per share

125.4
cents
15
FINANCIAL STATEMENTS
0.6
GOVERNANCE
Copper production of 630,300

tonnes, a 10.6% decrease on 2014.
13
709.6
tonnes
640.5
630,300
12
STRATEGIC REPORT
11
3,394.6
5,145.6
5,971.6
6,740.1
Revenue of $3,394.6 million, 34.0%

lower than 2014 due to fall in
realised prices and lower production.
Revenue
6,076.0
OVERVIEW
$3,394.6
The business
Mining is the Groups core business, representing over 90% of Group revenue
and EBITDA. The Group operates four copper mines in Chile, two of which also
produce significant by-products. The Group has a significant portfolio of growth
opportunities located predominantly in Chile and in the United States.
Further information on pages 39 to 51.
Group strategy
The strategy for growing the Groups

mining business is based around
three pillars:
Further information on pages 28 and 29.
Mining
1 The existing core business
Los Pelambres
Centinela
60% owned
70% owned
The Groups flagship mine is in central Chile,

generating over 57% of overall production and
approximately 65% of EBITDA. It produces copper
concentrates containing gold and silver anda
separate molybdenum concentrate.
The Groups second largest operation is located

in a world-class mining district in northern
Chile. Centinela produces copper concentrates
containing gold and silver, and copper cathodes.
2
3
The existing
core business
C
onstant focus on cost management
and compliance
Delivery of production and cash cost guidance
Continue to get the best possible performance
from existing assets
Proactive new approach with community and
other stakeholders
Organic and sustainable growth

of the core business
C
omplete Antucoya ramp up to design capacity
Complete Centinela 105 ktpd expansion
Progress Encuentro Oxides and Centinela
Molybdenum Plant projects
Advance Centinela Second Concentrator and
Los Pelambres Incremental Expansion feasibility
studies and permitting
Antucoya
Zaldvar
70% owned
50% owned
Antucoya started production during 2015 and is

expected to achieve its design capacity of 85,000
tonnes of copper cathodes per annum during the
first half of 2016.
The Group acquired a 50% interest and assumed

operatorship of Zaldvar in December 2015.
Zaldvar is an operating mine in northern Chile
producing copper cathodes.
Further information on page 46.
Production
Copper (tonnes)
2015
2016 forecast
Los Pelambres
363,200
355365,000
Centinela Concentrates
145,200
175185,000
Centinela Cathodes
75,900
6065,000
Michilla1
29,400
Antucoya
12,200
6570,000
Zaldvar2
Total
4,400
5055,000
630,300
710740,000
Molybdenum (tonnes)
Gold (ounces)
2015
2016 forecast
2015 2016 forecast
10,100
89,000
10,100
89,000
1 Put on care and maintenance at the end of December 2015.

2 Attributable production, the Group became the operator of the mine in December 2015.
Growth beyond
the core business
Progress international exploration activities

Continue optimisation of Twin Metals Minnesota
pre-feasibility study
Monitor and assess attractive
acquisition opportunities
02 Antofagasta plc Annual report and financial statements 2015
51,400
4555,000
162,500
200220,000
213,900
245275,000
OVERVIEW
2 Organic and sustainable growth

Growth projects
Centinela
Los Pelambres
IncrementalExpansion
A debottlenecking project to increase daily ore

throughput in the concentrator to 105,000 tonnes
is underway and is expected to be completed in the
first half of 2016.
Encuentro Oxides
Molybdenum Plant
(000 tonnes)
2015
Combined rail and road
6,805
Centinela Second Concentrator

The Centinela Second Concentrator is expected
to have annual production of 140,000 tonnes of
copper, 150,000 ounces of gold and 3,000 tonnes of
molybdenum. An environmental impact assessment
has been submitted and the pre-feasibility study is
expected to be completed in 2017.
Los Pelambres
OTHER INFORMATION
This project to produce some 2,400 tonnes of

molybdenum at Centinela Concentrates, is expected
to be completed in 2017.
Volume transported
Construction of this project to provide additional

feed for the Centinela SX-EW plant continued during
2015. This project will allow Centinela Cathodes
to increase copper cathode production to 100,000
tonnes per annum until 2023 while at the same time
opening up the larger Encuentro Sulphide deposit
below the oxides.
During the year the Group revised the approach

to the incremental expansion of Los Pelambres
and decided to split the project into two phases to
ease the development of the project and conserve
development capital in light of lower commodity
prices. This two-phase strategy was approved by
the Board during the year and the feasibility study
isnow underway.
The current resource base is triple the size of the

current mine plan and has potential for a further
expansion in the longer term.
3 Growth beyond the core business

Greenfield
Twin Metals
Exploration
A copper, nickel and platinum group metals

underground mining project located in north-east
Minnesota. The Group acquired the balance of the
project in January 2015 and is now conducting
optimisations of the pre-feasibility study while
advancing the permitting process.
Active exploration programme internationally and in

Chile. Continue to advance a portfolio of early-stage
exploration activities.
GOVERNANCE
Under construction
The transport division operates the main

cargo transport system in the Antofagasta
Region of Chile, moving goods and materials
such as sulphuric acid and copper cathodes
to and from mines by road and onits
900km rail network.
STRATEGIC REPORT
Transport
Energy
The Group has a number of investments in
energy assets in Chile, with particular focus
onrenewable energy.
Antofagasta plc 03
Performance highlights
Throughout this period of lower copper prices Antofagasta

has had a rigorous approach to cost control at the operations
and at the corporate office, achieving operating cost savings
of $245 million in 2015. Good-quality assets and tight capital
discipline mean the Group can weather the current downturn
and maintain a competitive position in this challenging
environment and when the copper cycle begins to recover,
theGroup will enjoy healthy margin growth.
Revenue by division1
$3,394.6m
A Mining
1 Los Pelambres
2 Centinela
3 Michilla
B Transport
$890.7m
A Mining
B Transport
3,242.2
1,807.2
1,266.1
168.9
152.4
EBITDA by division1
832.3
58.4
18.7bn tonnes
Mineral resources2
11
12
13
14
18.7
17.9
16.2
13.7
Mineral resources increased

mainly due to acquisition of
Zaldvar and increase in resources
at Los Volcanes during the year.
15.2
(including ore reserves)
15

2M
ineral resources relating to the Groups subsidiaries on a 100% basis, and Zaldvar on a 50% basis.
A Los Pelambres
6,104 Mt @
0.51% Cu
G Encuentro
1,212 Mt @
0.42% Cu
B Centinela
3,553 Mt @
0.39% Cu
H Zaldvar
582 Mt @
0.53% Cu
C Twin Metals
2,372 Mt @
0.45% Cu
I Penancho
Blanco
293 Mt @
0.41% Cu
D Los Volcanes
1,904 Mt @
0.50% Cu
J Michilla
60 Mt @
1.64% Cu
E Polo Sur
1,544 Mt @
0.34% Cu
K Mirador
51 Mt @
0.34% Cu
F Antucoya
1,255 Mt @
0.31% Cu
L LlanoPaleocanal
46 Mt @
0.50% Cu
Mineral resources by
operation and deposit2
H
G
J-L
D
C

Jean-Paul Luksic
OVERVIEW
STRATEGIC REPORT
We took a cautious approach

to developing our business
atthe peak of the market.
Antofagasta has weathered another difficult

year, but remains on a solid and sustainable
footing for the long term.
Chile finding solutions together
Mining is an important part of Chiles
economy, contributing 11.2% to its GDP in
2014. With our history in the country, and
our status as the largest non-state mining
Group, Antofagasta is well positioned
to help realise the full potential of the
countrys world-class copper resources.
We believe that Chiles political and fiscal
stability, and its skilled mining workforce
make it an attractive place for our capital,
asdemonstrated by our investments
inZaldvar and Antucoya.
Antofagasta plc 05
OTHER INFORMATION
Against this backdrop it has not been

business as usual for Antofagasta this
year. Alongside our peers we have suffered
from the worsening macro-environment
and deteriorating market conditions.
The commissioning of Antucoya took
longer than planned despite the projects
construction cost being on budget. At an
operational level, heavy rains early in the
year led to delays in the commissioning
of our expansion of Centinela, while
community action at the Los Pelambres
mine saw interruptions to production.
As aresult our production performance for
2015 fell short of our original expectations.
Managing these challenges is important,

but I believe that every downturn also offers
opportunities and during 2015 Antofagasta
acquired a 50% stake in the high-quality
Zaldvar copper mine in northern Chile with
minimal impact to the balance sheet as
it followed the sale of our water division.
The acquisition was carefully considered and
represents a rare opportunity to advance our
long-term objectives, building on our existing
portfolio of operations.
There is no doubt that 2015 has been

a difficult year, and one in which the
challenges facing our industry have been
brought into sharp focus. Continued falls
in commodity prices have highlighted the
worst effects of more than a decade of
bullish markets, a time when the industry
appeared to have forgotten that the mining
business is cyclical and cost control came
a distant second to production growth.
This over-exuberance led to over-investment
in new mining capacity across the globe
and a resultant decline in productivity.
Industry lead times have meant that just
as global demand growth slowed, much
ofthis new production came online at what
are now unsustainable costs. Now isthe
time to remove the consequences of
these excesses.
We took a cautious approach to developing

our business at the peak of the market, and
as a result we entered the current downturn
with a strong balance sheet. As we continue
to respond to low commodity prices, we
are taking the steps needed to ensure our
continued financial resilience in the future
by working hard and focusing our efforts on
being disciplined in our allocation of capital,
reducing costs, improving operational
efficiencies and lowering our overheads.
We remain focused on cash flow generation
and margin improvements through
sustainable cost reductions and productivity
improvements that help compensate the
impact of lower commodity prices.
GOVERNANCE
Dear Shareholders,
Our approach to allocating

capital with an appropriate
balance between investment,
growth and dividends has
allowed the Company to retain
a strong position and our
financial strength gave us the
capacity to take advantage of
opportunities over the year.
The impact of lower commodity prices on

jobs and revenue generated by the mining
sector to Chile is substantial, and to ensure
the long-term sustainability of mining,
the response must be a collective one
companies, employees, communities and
government must unite to find solutions to
complex problems. We must co-operate
to reverse the decline in productivity and
continue to work with our communities to
reduce our social and environmental impact.
Only by doing this can we ensure our
industry has a long-term future in Chile.
Managing current challenges
Early in 2015 we were faced with
disruptions at our Los Pelambres operations
as a result of a blockade by the local
community, who were protesting about the
perceived impact of the mining operations
on the local water supply. We realised that
we must change the way that we engage
with our communities in order to strengthen
our relationships and find solutions that
work for all sides. We are only at the
beginning of this journey but I am confident
that the actions we have taken over the
course of 2015 have taken the depth of our
engagement with the local communities to
a new level and will provide us with a strong
foundation for the future.
Turning to our financials, while lower metal
prices impacted revenue and profit, we
remained focused on maintaining a strong
balance sheet, improving operational
efficiencies and managing costs all with
a keen focus on cash flow and margins.
Our approach to allocating capital with an
appropriate balance between investment,
growth and dividends has allowed the
Company to retain a strong position and
our financial strength gave us the capacity
to take advantage of opportunities over
the year.
The sale of the ADASA water business

effectively funded our acquisition from
Barrick Gold in December of a 50% stake in
the Zaldvar copper mine. We take a rigorous
approach to acquisitions, and over the last
three years the team screened 2030
potential projects with only Zaldvar meeting
our long-term objectives and passing our
hurdle rates for this type of investment.
The closing of an extraordinary
mine Michilla
The year saw the closure of the Groups very
first mine, Michilla, after 50 years of copper
production. Michilla played a very important
role in Antofagastas history and inmy
personal life. When I was 18 years old I did
a summer internship at Michilla as a rock
drill operators assistant in the underground
mine. This was my first job and it was
hard, but one I will never forget as I learned
valuable life experiences. For me and many
others, not only just in the Group, but in
the Chilean mining industry as a whole,
Michilla has been a great school for learning
about mining. With both oxide and sulphide
deposits, and underground and open pit
operations, Michilla was a microcosm
ofthecountrys copper mining industry.
For those who have worked at this mine,
I would like to say thank you. To the
communities, suppliers and our other
partners over the past half century as well
as the local, national and federal authorities,
thank you as well for being part of the spirit
of Michilla.
OVERVIEW
STRATEGIC REPORT
The year 2015 was a time for managing

the challenges that faced Antofagasta and
the wider industry as a whole in what has
been another year of brutal markets and
operating conditions. But, as was the case
with Zaldvar, this has also been a time for
taking advantage of opportunities when
they appear.
Governance and the Board
We will not be afraid to make difficult

decisions. Our internal business functions
have been strengthened, our costs reduced,
our balance sheet strength maintained
and, operationally, in the final quarter we
have seen a good end to the year. All of
this leaves us well placed to weather the
current downturn.
As a final note, I would like to thank all
ofouremployees and management for
alloftheir hard work over the last year and
Ilook forward to the year ahead.
I would also like to take this opportunity

tothank Miguel Sepulveda for his 29 years
of service at Antofagasta, the last 22 years
of which have been as General Manager for
our railways business, the historical heart of
the Group. Miguel stepped down in October
and I thank him for his service and loyalty to
Antofagasta and wish him the very best for
his retirement.
Antofagasta plc 07
OTHER INFORMATION
Over the course of the year we undertook

a number of changes to the Board to
enhance our corporate governance.
The introduction of a new Projects
Committee will allow greater Board
oversight of Antofagastas major projects.
The development of new projects is
critical to the future of the Company and
this Committee will allow more detailed
scrutiny of our projects than is possible at
full Board meetings. All matters that are
brought to the Board for approval will first
be reviewed by the Committee to highlight
matters for the Boards consideration
and to make recommendations to the
Board. This Committee is already making
an important contribution to providing
Board-level input into the advancement
ofour projects.
As we look forward to 2016 we are

under no illusion that the macroeconomic
environment will improve in the near term.
We are expecting another year of low
copper prices. Consequently, it is vital that
we continue to focus on improving our
operational performance and our ability
todeliver on our commitments.
Outlook
The safety of our employees, communities

and operations always comes first in
everything that we do and we continue
to work hard to achieve our target of zero
fatalities. However, I am saddened to report
that during the course of 2015 Antofagasta
had one fatality, and I would like to express
on my own behalf as well as that of the
Board my sincere condolences to the
family of our colleague.
GOVERNANCE
It is vital that we continue

to focus on improving our
operational performance
andour ability to deliver
onour commitments.
Safety

Diego Hernndez
We have made several

structural changes during
the year including starting
up our new Antucoya mine,
selling our water division,
purchasing a 50% interest
inthe Zaldvarcopper mine
and closing Michilla.
We are in the sixth year of the downturn

inthe copper market. While I entered 2015
with a degree of optimism that the year
would see the low of the cycle, continued
deterioration in the macro-environment has
instead created further downward pressure
on prices. However, we have used 2015
to reset our costs back to levels that we
have not seen for some time. We have
made significant progress in this respect
and I believe we will be able to reduce our
costs further in the coming year. We are
extending our cost reduction programmes
which, together with the smooth start-up
and integration of Antucoya and Zaldvar, will
bean important focus of 2016 and beyond.
With our healthy balance sheet and low
cost operations we are in a good position
to weather the current market conditions.
While we cut costs and free-up cash flow
we are also in a position to consider taking
advantage of any acquisition opportunities
that arise, although we would only do so if
we felt confident in our continued financial
condition. We know that copper is a cyclical
industry and as a result of the actions that
we have taken over the past year we will
be better positioned to benefit from the
recovery when it comes.
Safety and health
We sadly had a fatality in 2015 as a result
of a rockfall in our underground mine at
Michilla. This is a great tragedy, especially
as the mine was in its last few months of
operation. I offer my sincerest condolences,
together with all those of the senior
management team, to Sergio Brunas
family. It is not acceptable that we still have
fatalities and we are determined to achieve
our target of zero fatalities.
We have introduced a new safety

management system based on
risk prevention that has shown real
improvements in safety awareness by
employees and contractors. In 2015, there
was a significant increase in the reporting
of high-potential near misses, which is a
fundamental preventative measure and is
improving our understanding of the key
risk areas.
Our executive team visit each of the Groups
mining operations periodically as part of
a special safety leadership programme,
demonstrating the importance of safety
and empowering everyone to ensure safety
comes first in everything we do.
2015 business performance
The focus of the year has been on
optimising our operations to ensure
we remain competitive in a low-price
environment. We have also made several
structural changes during the year as we
strengthen our position as a focused copper
miner. Major highlights include the start of
production at our new Antucoya mine, the
sale of our water division and the purchase
of a 50% interest in the Zaldvar copper
mine from Barrick Gold. At the same time
we also took the decision to close the
Michilla mine, which after a long history
as part of the Group has come to the end
of its economic life. These changes have
meant that we have tightened the mining
focus of the Group and increased our
production capacity.
Against the backdrop of a weak macroenvironment, prices fell for all our products.
Our average realised copper price was
24% lower than in 2014 and gold and
molybdenum were down 8% and
49%respectively.
The Groups position in a

challenging environment
Strong balance sheet
Competitive operating cost position
Re-setting community engagement
Preserving growth projects
Sale of water division

Bring Antucoya to full production
Purchase of TMM and stake
inZaldvar
Closure of Michilla
3
Discipline
Cost control without increasing risk

Reduce development capital
expenditure without compromising
future growth
The total dividend for the year is 3.1 cents

per share, or $30.6 million, which was paid
as the interim dividend, and as a result
exceeds the minimum payout ratio set
in the Groups dividend policy. No final
dividend has been recommended by
the Board.
Total operating costs in the mining division
were reduced by some $245 million,
or 8%, during the year. Our Cost and
Competitiveness Programme achieved
$150 million of mine site savings, or 11c/lb,
and approximately another $95 million was
saved through reductions in exploration
and evaluation, and corporate costs.
The cost reductions we achieved followed
an intense review of our cost structures
and productivity.
Antofagasta plc 09
OTHER INFORMATION
Maintain our discipline

andflexibility
The sale of the water division for

$963 million in June generated a profit
of$616 million, which has been recorded
as a profit from discontinued operations.
Excluding this amount, net earnings from
continuing operations for the year were
$5.5 million or 0.6 cents per share, a 98.7%
decrease from 2014. Net earnings including
discontinued operations increased by
32.2% to $608.2 million.
2
Optimise
GOVERNANCE
Optimise our portfolio
Despite the significant fall in production,

cash costs before by-product credits for
the year fell by 1.1% to $1.81/lb. A weaker
Chilean peso against the US dollar (net of
inflation) reduced costs by 6c/lb, and falls
in the oil price, together with lower power
costs at Los Pelambres and other lower
consumables prices, reduced costs by a
further 9c/lb. Net cash costs were further
impacted by weak by-product prices and
lower gold production, and increased by
4.9% to $1.50/lb compared with 2014.
Offsetting the savings was an increase
of18c/lb arising from the lower production
during the year.
STRATEGIC REPORT
1
Position
Copper production was down by 74,500

tonnes to 630,300 tonnes, with lower
throughput at Los Pelambres as we mined
harder ore, and a significant fall in grade at
Centinela. This, together with delays to the
start of the commissioning of Antucoya and
the expansion of Centinela Concentrates,
the closure of the Michilla mine, heavy rains
at Centinela and protests at Los Pelambres,
all had an impact in lowering production
compared to 2014. The lower prices and
lower production led to Group revenues
falling by 34% to $3.4 billion compared with
2014 and EBITDA decreasing by 58% to
$891 million, some $1.25 billion lower than
last year.
OVERVIEW
Areas of focus
This involved overhauling how we

structured our service contracts, increasing
operational efficiencies, extracting further
synergies from the Centinela merger, and
reducing employee numbers. Looking
forward to 2016, we expect to make further
mine site cost reductions of$160 million.
Zaldvar acquisition
Towards the end of the year, we acquired
a 50% interest in the Zaldvar copper mine
and took over as operators. The opportunity
to purchase an interest in a mine of this
quality rarely occurs and it is a reflection
of the state of the market that it was
offered for sale. The acquisition was
keenlycontested as copper remains
widely regarded as one of the metals
with the best outlook in the medium and
long term. The acquisition was carefully
considered and represented a unique
opportunity to advance the Groups longterm objectives, building on its existing
portfolioof operations.
We have taken over as operators of the
mine, which is expected to achieve savings
of some $1520 million from synergies
with our existing corporate functions and
aprogramme of cost reductions during the
year. We expect our attributable production
in 2016 to be 5055,000 tonnes of copper
and then to rise as mining moves into
higher grade areas of the pit. The Group
is also investigating increasing leach
recoveries at the operation.
Managing our position through
thedownturn
Over the course of 2015, we have prepared
for a period of prolonged weak markets
and have contingency plans should prices
deteriorate further. Beyond the actions
I have mentioned regarding reducing
operating costs, we are also taking steps
to improve our free cash flow through a
tighter control of inventory and a reduction
in both development and sustaining capital
expenditure. No expenditure is made
without careful consideration.
Total capital expenditure in 2015 was
approximately $1.05 billion and in 2016
is expected to drop slightly to some
$1.0 billion including mine development,
which increases by some $200 million.
We currently have two development

projects underway, Encuentro Oxides and
the new molybdenum plant at Centinela.
Both of these projects were started in
early 2015 and were scheduled to be
completed by the end of 2016 and early
2017, respectively. Although stopping
these projects would be disproportionately
expensive considering their state of
advancement, their development is now
being slowed with no impact on their
net present value and will now not be
completed until the second half of 2017.
This will help preserve cash in 2016 and,
once these projects are commissioned, we
will not need to commit to any new projects
until the market outlook improves.
Future growth
The next stage of growth will come from
our Los Pelambres Incremental Expansion
project and building a second concentrator
at Centinela, which will add up to 200,000
tonnes of annual copper production.
Both of these projects completed their prefeasibility studies in 2015 and are currently
at the feasibility study stage. These studies
are being undertaken at minimum cost
and can be accelerated if conditions
improve, but are currently not planned
tobecompleted before late 2017.
The development of the Los Pelambres
Incremental Expansion will be split into two
phases. The first will maximise throughput
under the mines existing environmental
and water permits. The second will
increase throughput to 205,000 tonnes per
day. This phasing will simplify the permit
application process and spread the costs
ofthe expansion over a longer period.
At Centinela the Environmental Impact
Assessment for the second concentrator
was submitted in May and is expected to
be approved in 2016. The feasibility study is
underway and will focus on the first phase
of expansion to add some 140,000 tonnes
of copper, 150,000 ounces of gold and
3,000 tonnes of molybdenum annually.
Sustainability
In 2014, we announced that we had
secured several new Power Purchase
Agreements at Los Pelambres which will
mean that by 2019 some 80% of energy
used at the mine will come from renewable
sources. This is a major step forward that
will limit our impact on the environment
andalso help us to manage our costs.
In 2014, the El Arrayn wind farm was

commissioned, followed by the Javiera
solar plant last year and then the Conejo
solar plant this year, which in total will
provide Los Pelambres with 90MW
of power.
During 2015, at Los Pelambres we made
considerable progress in informing our
local communities about our use of water
and the impact of the Mauro tailings dam.
We have engaged in a consultation process
with all of the affected communities in
avariety of different forums.
Through these forums we are working
together to identify future water supply
solutions and to agree compensation
for the impact of the Mauro dam on
those who live nearest to it in Caimanes.
Considerable progress has been made and
we expect that 2016 will see agreement
onlasting solutions for those affected.
This is part of our ongoing commitment
to ensure that the impact we have on the
communities and environments in which
we work is limited as much as possible.
Outlook
In 2016, we expect to produce 710740,000
tonnes of copper, 245275,000 ounces of
gold and 89,000 tonnes of molybdenum,
as Antucoya ramps up to full production
and Zaldvar contributes its first full year of
production. If we achieve the top end of our
copper target we will have had our highest
year of production ever and we expect
this, together with savings and productivity
programmes, will see our cash costs before
by-products fall to 2012 levels of $1.65/lb
and our net cash costs to $1.35/lb.
World markets at the beginning of 2016
have been dominated by uncertainty
and negative sentiment even though the
fundamentals are little changed. This has
not been good for the mining industry and
the copper price dropped below $2.00/lb
in January. However, if the fundamentals
prevail as we expect, the price should
stabilise during a period of small supply
surpluses before recovering in late 2017,
early 2018. These years are going to be
difficult for both Antofagasta and the wider
industry and will require perseverance and
discipline. We will continue to work hard to
protect our margins and manage our cash
flow, while remaining open to opportunities
in the market. The actions that we are
taking now will allow us to emerge from
this downturn in a stronger position than
we entered it.
Strategic report
12
Creating value through the mining lifecycle
12
19
Key relationships
22
The marketplace
25
Strategy for the mining business
28
Key performance indicators
30
32
38
Operational review
Mining division
39
The existing core business
40
48
52
Managing a sustainable business
53
Financial review
64
Revenue
65
Cash flows
67
Financial position
68

forward-looking statements
68
Results
GOVERNANCE
Growth projects and opportunities

Transport
STRATEGIC REPORT
Risk management
Long-term viability statement
OVERVIEW
Business model
OTHER INFORMATION
Antofagasta plc 11
Business model
Creating value through

the mining lifecycle
Investment versus income
Mining is a long-term business and timescales can run into

decades. The period from initial exploration to the start of
production often exceeds ten years and then, depending
on the nature of the project and market conditions, it may
take more than five years of operation to recoup the initial
investment. If possible, mines usually plan to exploit highergrade areas towards the start of the mine life in order to
maximise returns from the operation. As a result, average
ore grades may decline over time, with production volumes
decreasing alongwith revenues.
1. Inputs
2. Exploration
3. Evaluation
4. Construction
Resources
Relationships
Chile
International
Los Pelambres
Incremental
Expansion
Centinela Second
Concentrator
Twin Metals
Encuentro Oxides
Centinela
Molybdenum Plant
urther information
F
on page 14.
Further information
onpage 14.
Further information
onpage 15.
urther information
F
onpage 15.
Income
35 YEARS
5 YEARS
35 YEARS
Investment
Innovative sustainability
Sustainable development is an integral and innovative

component of Antofagastas decision-making process,
firmly embedded in the business model and strategy of the
Group. Antofagasta is committed to operational excellence,
safety, talent management, environmental management
andcooperation with employees and local communities.
OVERVIEW
STRATEGIC REPORT
Revenues, however, depend on commodity prices. These tend tobe cyclical,

so even as production volumes decline revenues can increase, and vice
versa. Long-life and low-cost operations increase the chances of a mine
benefiting from the peaks in the commodity price cycle while withstanding
the troughs. Also, during the life of a mine there will often be expansions
thathelp it to keep down its unit costs of production the most important
financial KPI on a mine.
Core operations
6. Processing
7. Marketing
8. Restoration
The copper and

byproducts from the
Groups mines go on
tobe further processed
for use in end markets,
including property,
power, electronics,
transport and
consumer products.
urther information
F
onpages 16 and 17.
Further information
onpages 16 and 17.
Further information
onpage 18.
urther information
F
onpage 18.
Income
+20 YEARS
Investment
Sustainability drives business success and without it the Group

would not operate as efficiently as it does.
For more information on the Groups commitment to sustainability see pages 53to63.
Antofagasta plc 13
OTHER INFORMATION
urther information
F
onpages 16 and 17.
Ongoing value chain

Los Pelambres
Centinela
Antucoya
Zaldvar
9. Outputs
GOVERNANCE
5. Extraction
Business model
1. Inputs
Balanced
inputs
The Groups mining operations depend on a range of key inputs, such as energy,
water,labourand fuel. The management of these inputs has a significant impact
onoperating costs, so ensuring the long-term availability of key resources is a vital
partofsupply management.
Resources
Labour
Financial capital
Mineral resource-rich land
Relationships with
Employees and contractors
Customers
Suppliers
Energy
Water
Reagents
Plant and equipment

Services and supplies
Fuel
Neighbouring communities
Environment
Government and
public authorities
Infrastructure providers
ore on key inputs and
M
cost base on pages 19 to 21.
Growing
resources
To secure the future of the business in the long

term, the Group must grow its mineral resource
base. It undertakes in-house exploration activities
in Chile. Exploration programmes further afield are
carried out in partnership with other companies
in order to benefit from their local knowledge
and experience.
Exploration programmes
throughout Chile
More on pages 50 and 51.
Earn-in agreements in
NorthAmerica, Latin
America, Europe, Africa
andAustralia
Increased mineral
resources by 831.3
million tonnes in 2015
atLosVolcanes and
Polo Sur deposits.
Exploration 35 years
2. Exploration
INPUTS
CONSTRUCTION
EXTRACTION
PROCESSING
MARKETING
RESTORATION
Effective project evaluation and design is critical

tomaximise value at this stage of the mining cycle.
The Groups wealth of experience in both areas
helps to make the bestuse of mineral deposits.
Los Pelambres
Incremental Expansion
The Group integrates sustainability criteria into design

processes and project evaluation, developing innovative
solutions for challenges such as water, energy and
community relations.
Centinela Second
Concentrator
More on page 49.
OUTPUTS
STRATEGIC REPORT
Twin Metals
More on page 50.
More on page 48.
Encuentro Oxides
More on page 48.
Molybdenum Plant
More on page 48.
The Group has a co-operative approach to developing

projects. Typically, after the feasibility stage, and into
the construction phase, the Group seeks a partner
for projects, diversifying risk and providing a broader
access to funding.
Centinela
GOVERNANCE
Risk sharing
Efficient
construction
and cost control
Once a project has been approved by the Board,

construction begins. This stage requires significant
input of capital and resources, and effective
project management and cost control are key
tomaximising a projects return on investment.
Construction 35 years
4. Construction
OVERVIEW
Maximising
value
EVALUATION
Evaluation 5 years
3. Evaluation
EXPLORATION
OTHER INFORMATION
Antofagasta plc 15
Business model
Operating
efficiency
The Groups four operations in Chile are: Los Pelambres, Centinela,

Antucoya and Zaldvar.
The world-class Los Pelambres and Centinela districts have long-life operations
with large mineral resources and produce significant by-products: gold, silver
and molybdenum. Within these operations are four open pit mines. In 2015, the
Group completed the construction of Antucoya, the only new mine opened in
Chile during the year.
Operations 20+ years
5. Extraction
In December 2015, the Group acquired a 50% interest in the Zaldvar copper
mine and became the operator.
Safety and health are key elements of operational efficiency and remain a top
priority for the Board and management team.
Quality
output
Long-term
relationships
Los Pelambres and Centinela Concentrates

Mined sulphide ore is milled to reduce its size beforepassing to flotation
cells where it is upgradedto a concentrate containing some 25-35% copper.
This concentrate is then shipped toasmelter operated by a third party and
convertedto copper metal.
Centinela Cathodes, Antucoya and Zaldvar
Mined oxide ore, combined with leachable sulphide or at Zaldvar, is crushed,
piled into heaps and then leached with sulphuric acid, producing a copper
sulphate solution. This solution is then put through a solvent extraction and
electrowinning (SX-EW) plant to produce copper cathodes, which are sold
to fabricators around the world.
The marketing team builds long-term relationships with smelters and

fabricators who purchase the Groups products, with approximately 76%
of output going to Asian markets.
As well as copper, a number of the Groups mines produce significant volumes
of metal by-products: gold, molybdenum and silver.
Gold is sold for use in industrial and electronic applications and in jewellery
making. Molybdenum is used in industrial applications, mainly in steel alloys.
Silver is used for electrical and electronic applications and for jewellery.
Most copper and molybdenum sales are made under annual contracts or
longerterm framework agreements, with sales volumes agreed each year,
which guarantees offtake.
For more information on the structure of the Groups sales contracts,
please see page 22.
7. Marketing
The Group mines both copper sulphide and copper oxide ores which
require different processing routes:
6. Processing
INPUTS
EXPLORATION
EVALUATION
CONSTRUCTION
EXTRACTION
PROCESSING
MARKETING
RESTORATION
OUTPUTS
OVERVIEW
STRATEGIC REPORT
Los Pelambres
More on pages 40 to 42.
Start of operation: 2000

Estimated output in 2016:
Oxide Ore
Sulphide Ore
355365,000 tonnes
GOVERNANCE

175185,000 tonnes
Centinela Cathodes

6065,000 tonnes
Heap-leaching
andSX-EW
Concentrator
Antucoya
More on page 46.
OTHER INFORMATION

6570,000 tonnes
Zaldvar
More on page 47.

Estimated output in 2016 (50%):
5055,000 tonnes
Cathodes
Concentrates
Antofagasta plc 17
Business model
Managing
our impact
During the operation of a mine, its impact on the

environment and the neighbouring communities
is carefully managed. At the end of its life, a mine
must be closed and the surrounding habitats
restored to their original state.
More on Managing a sustainable

business onpages 53 to 63.
A closure plan for each mine is maintained and updated

throughout its life to ensure compliance with the latest
regulations and sustainable closure.
Exploration 20+ years
8. Restoration
Sustainable development
is an essential component
of the Groups decisionmaking process and
business model.
9. Outputs
Economic
andsocial
value
The Groups mining operations create significant

economic and social value for a wide range of
stakeholders local communities benefit from
job creation and improved infrastructure, while
the Chilean government and local municipalities
receive tax payments and royalties. There are also
benefits to society in general the copper the
Group produces is used in a wide range of sectors,
from industrial to medical.
Outputs
Copper
By-products: gold, molybdenum and silver
Outcomes
Financial (reinvested profits, dividends
toshareholders, taxes to government)
Improved local infrastructure
Impact on environment (minimised as
faras possible, see page 55)
Social and economic benefit to local
communities (jobs and opportunities
forpartnerships with local business)
Benefit to wider society and industry
(products used in a wide range of sectors)
More on KPIs on pages 30 and 31.
INPUTS
EXPLORATION
EVALUATION
CONSTRUCTION
EXTRACTION
PROCESSING
MARKETING
RESTORATION
OUTPUTS
OVERVIEW
$/MWh
250
200
H1 2014
Average $155
H1 2015
Average $133
150
H2 2014
Average $107
100
H2 2015
Average $58
H1 2014
Average $88
Dec 2013
Central grid (SIC)
H2 2014
Average $63
Jun 2014
H1 2015
Average $54
Dec 2014
H2 2015
Average $48
Jun 2015
Dec 2015
Northern grid (SING)
Source: SIC and SING
Exchange rate
Ch$/$
450
H1 2014
Average 553
H2 2014
Average 587
The programme focuses on four areas:
H1 2015
Average 621
700
H2 2015
Average 687
750
Dec 2013
Jun 2014
Dec 2014
Jun 2015
Dec 2015
Services productivity: Improving

productivity and quality of contracts
whilereducing costs
Actions:
Negotiated corporate level agreements
and associated price reductions for
key consumables such as tyres, fuel,
lubricants, grinding media, mining
equipment and spare parts as well
assolvents and reagents
Undertook rationalisation and negotiation
of smaller contracts
Implemented a new contractor
management system to measure
contractors efficiency in
providing services
Antofagasta plc 19
OTHER INFORMATION
550
650
The Group introduced the Cost and

Competitive Programme in 2014, with
theaim of reducing the cost base and
improving the Groups competitiveness
within the industry.
During 2015, the Group continued to focus
onreducing its operating costs through
itsintegrated Cost and Competitiveness
Programme. The Group achieved cost savings
of approximately $150 million. The target for
2016 is set at an incremental $160 million.
500
600
Cost and Competitiveness Programme
50
The Groups two largest operations,

LosPelambres and Centinela, are
competitively positioned on the copper
industry cost curve. This reflects low
operating costs andsignificant by-product
credits. The Group cash cost guidance for
2016, before byproduct credits, is $1.65/lb,
some 9% lower than achieved in 2015.
The initiatives below, implemented by the
Groups procurement department contribute
to the reductions required to lower unit
costs, even while mine grades are declining.
GOVERNANCE
Chilean central and northern grid spot energy prices
STRATEGIC REPORT
The Groups mining operations depend on key inputs, such as

energy, water, labour and fuel. For cathode producers such as
Centinela, Antucoya and Zaldvar, which use the SX-EW process,
sulphuric acid is also a key input. The availability and cost of
such inputs lie at the heart of the Groups cost management
strategy, which focuses on cost control and security of supply.
Business model
Operational and maintenance

management: Improving
performance of critical processes and
implementation of standard maintenance
management practices
Actions:
Group-wide initiative to reduce
consumption of items such as fuel,
grinding media and energy
Developed maintenance schedules while
optimising utilisation of critical equipment
Corporate and organisational
effectiveness: Reducing costs
and restructuring the Groups
organisational functions
Actions:
Conducted an organisational restructuring
programme in October 2015, with further
restructuring planned for 2016
During the year, the Group was

able to save over $150 million
due to the implementation of
the Cost and Competitiveness
Programme.
Reduction in corporate costs such as

consultancy and travel
Energy efficiency: Optimising energy
efficiencies, while achieving lower contract
prices for energy
Actions:
Signed long-term PPAs with two solar
power providers for a total of 50MW
ofpower, one of the PPAs commenced
during 2015 and the second PPA is due
tocommence in mid-2016
Reviewed abatement cost curves of
each mine and defined specific energyefficiency projects for each operation
Energy
The Group sources its energy from the two
electricity grids in Chile: the northern grid
(SING) supplies the Centinela, Antucoya
and Zaldvar mines, and the central grid
(SIC) supplies Los Pelambres. In the
SING, approximately 80% of the energy
comes from coal-fired power stations and
5% from wind and solar plants, with the
remainder from LNG and diesel-powered
plants. In the SIC, approximately 50%
of the energy comes from hydroelectric
plants, 5% from wind and solar generation,
and the remainder is from coal, gas and
diesel-fuelled plants. Due to the SICs
reliance on hydroelectric power, the cost
ofenergy fluctuates depending on the level
of precipitation, whereas on the SING costs
tend to be more stable.
The Group endeavours to procure medium

and long-term electricity contracts at each
mine. The cost, in most cases, is linked
to the current cost of electricity on the
Chilean grids or the generation costs of
aparticular supplier, with the latter subject
to adjustments for inflation and each
generators fuel input prices.
In 2012, Los Pelambres was facing an
energy market with scarce availability of
long-term PPAs indexed to more stable
fuel input prices, leaving it exposed to spot
energy prices. To mitigate this exposure,
the Group has taken certain actions to
improve Los Pelambres security of supply,
investing in Chiles largest wind-power plant,
El Arrayn, which now provides some 20%
of Los Pelambres energy requirements.
Los Pelambres has also signed long-term
PPAs with two solar power providers for
atotal of 50MW of power and a short-term
PPA for another 50MW. One solar PPA
commenced in 2015 and the second will
commence in mid-2016. During 2015,
LosPelambres also started to receive power
under a long-term PPA from a coal-fired
power plant. These PPAs, together with
one signed in 2013 as part of the Groups
investment in Alto Maipo, will provide all
of Los Pelambres energy requirements
atcompetitive and stable prices from 2019.
All Group operations located on the SING
benefit from long-term contracts, mostly
indexed to the price of coal. Zaldvar had
anexisting long-term PPA securing 100%
ofits power demand until 2020.
More on Energy on page 51.
INPUTS
EXPLORATION
EVALUATION
CONSTRUCTION
EXTRACTION
Water is a precious commodity in

the regions where the Groups mines
operate, so the recycling of water is of
great importance.
The Central Procurement Department is

repositioning the Group as a single entity
rather than several separate operations.
Procurement policies and procedures
have been standardised. A central group
of subject matter experts now defines
categories of products and services.
There are new corporate level agreements
with price reductions and discounts in
high spend categories such as tyres, fuel,
lubricants, pick-up trucks, explosives and
blasting, grinding media, mining equipment
and spare parts as well as solvents and
reagents. This will save over $150 million
over the coming five years.
Water for each operation is sourced

either from the sea or from surface and
underground sources. Each operation has
the necessary permits for the long-term
supply of water at current production levels.
The Group optimises water efficiency
by using desalinated sea water, reducing
demand and encouraging recycling across
the operations. Water reuse rates depend
on a range of factors and the Group seeks
toachieve between 7085% depending
onthe characteristics of each operation.
ore on Managing a sustainable business

M
onpages 53 to 63.
Labour
Sulphuric acid
The sulphuric acid market weakened during
2015, mainly due to lower consumption
in the fertiliser industry. In Chile, acid
consumption at mine operations decreased
as lower copper prices affected production,
lowering the regional deficit and causing
prices to drop by the end of the year.
The Group secures most of its sulphuric
acid requirements for a year or longer at
specified rates, normally agreed in the latter
part of the previous year. Therefore, the
decline in demand is likely to benefit the
acidprocurement programme in 2016.
The Groups corporate procurement team

uses a variety of strategies, from full price
competition, price auctions or sourcing in
China, to working with strategic suppliers
to reduce the costs to each party and
achieve a sustainable, longer-term lower
cost base for future growth. To foster this
co-operative approach, the Group has
engaged productivity experts to map the
operations and understand value streams
and opportunities for the Group to increase
efficiency and reduce costs.
The Group has recently upgraded its financial

and management systems implementing
SAP, an enterprise resource planning system
that centrally manages all stock codes,
inventories and supply contracts.
The procurement of supplies for the
Zaldvar operation has been fully integrated
into the Groups centralised procurement
system and will benefit from existing Group
supply contracts.
Oil price
Fuel represents a small proportion of total
costs and is used in trucks transporting ore
and waste at the mine sites. Nevertheless,
improving fuel efficiency is a priority, with
the litres of fuel consumed per tonne of
material extracted being a key measure.
Fuel is supplied by Chiles two largest
suppliers to avoid sole supplier risk.
The oil price also affects the spot price
of energy, shipping rates for supplies and
products and the cost of items such as tyres
and conveyor belts which contain oil-based
products. The oil price fell by approximately
30% during 2015 and this weakness has
continued in early 2016. This will affect
the Groups costs, but the impact will not
be significant.
Exchange rate
Costs are affected by the Chilean peso to
USdollar exchange rate, as approximately
35-40% of the mining divisions operating
costs are in Chilean pesos. However, the
exchange rate often acts as a natural hedge
as over half of Chiles foreign exchange
is generated from copper sales and so
movements in the copper price tend to
affect the exchange rate. During 2015, the
peso weakened by 14% from Ch$570/$1
in2014 to Ch$654/$1 in 2015. During
the first two months of 2016, the peso
averaged Ch$712/$1.
The Central Procurement Department

continually seeks to increase productivity,
optimise service contracts, reduce relevant
supply costs and better manage inventory
levels, as well as consolidating minor
suppliers for non-critical goods and services.
Antofagasta plc 21
OTHER INFORMATION
Contractors make up approximately 72%

of the total workforce across all Group
operations. Labour negotiations for the
contractors workforce are the responsibility
of contractors. The Group maintains strong
relations with all contractors to ensure
operational continuity.
In total, the Group has over 1,000 contracts

for goods and services. All key contracts,
such as for tyres, grinding media, mining
and mobile equipment, chemicals,
explosives, camp administration and
maintenance, are under long-term
agreements. Price adjustment formulas
reflect current market downturns of key
cost elements, such as steel, petrol, coal,
etc. Contracts are normally between the
operation and the supplier, but tender
andnegotiation processes are mostly
coordinated or even led centrally by
the Central Procurement Department
tomaximise leverage and benefits.
Over the last two years, the Groups

material stocks have been reduced by a
third, equivalent to $75 million, without
compromising service levels.
Secure labour supply is key to the Groups

success. Labour agreements with unions
are in place at all of the Groups mining
operations, generally covering periods of
four years. In 2014, new labour agreements
were negotiated at all operations, except
Zaldvar, securing terms of employment for
all employees until 2018 and at Zaldvar until
2017. The Group continues to foster good
working relationships with its employees
and labour unions and to date there has
beenno industrial action.
OUTPUTS
GOVERNANCE
The Group has pioneered the use

of untreated sea water at its Chilean
operations, with both Centinela and
Antucoya using this process. In 2015,
seawater accounted for 45.5% of total
Group water use.
In 2015, the procurement team analysed

thetop 20 contractors across each operation
in order to standardise procurement
practices, re-scope major service contracts
and seek price reductions with suppliers
in exchange for centralised agreements.
The Group continually reviews its
procurement processes and existing
agreements and has identified additional
cost-saving opportunities to be taken in
the coming years as part of the Cost and
Competitiveness Programme.
RESTORATION
STRATEGIC REPORT
Service contracts and key supplies
MARKETING
OVERVIEW
Water
PROCESSING
Business model
Key relationships
The Group cannot run its business in isolation. The business
model is underpinned by a series of relationships with
stakeholders at local, regional, national and international level,
which contribute to the long-term success of the Group.
The Group forms long-term partnerships with some suppliers,
while others are managed with a more short-term focus based
on market competition.
Customers
Most of the copper and molybdenum sales
are made under annual contracts or longerterm framework agreements, with sales
volumes agreed for the coming year.
The majority of sales are to industrial
customers who refine or further process
the copper smelters, in the case of
copper concentrate production, and
copper fabricators in the case of cathode
production. The Groups marketing
team builds long-term relationships with
these core customers, while maintaining
relationships with trading companies that
participate in shorter-term sales.
Over 80% of the Groups mining sales are
under contracts of a year or longer and
metals sales pricing is generally based
onprevailing market prices.
Structure of the Groups sales contracts
The Groups sales contracts typically set
out the annual volumes to be supplied and
the main terms for the sale of each payable
metal, with the pricing of the contained
copper in line with LME prices. In the case
of concentrate, a deduction is made from
LME prices to reflect TC/RCs the smelting
and refining costs necessary to process
the concentrate into copper cathodes.
These TC/RCs are typically determined
annually and in line with terms negotiated
across the concentrate market.
Similarly, the Groups molybdenum

contracts are made under long-term
framework agreements, with pricing
usuallybased on Platts average prices.
Across the industry neither copper
producers nor consumers tend to make
annual commitments for 100% of their
respective production or needs. Therefore,
producers normally retain a portion to be
sold on the spot market throughout the year.
The prices realised by the Group during
a specific period will differ from the
average market price for that period. This is
because, in line with industry practice, sales
agreements generally provide for provisional
pricing at the time of shipment, with final
pricing based on the average market
price for the month in which settlement
takes place.
For copper concentrate, sales remain
open until settlement occurs, on average
three to five months from the shipment
date. Settlement for the gold and silver
content in copper concentrate sales occurs
approximately one month from shipment.
Copper cathode sales remain open for
an average of one month from shipment.
Settlement for copper in concentrate sales
is later than for copper cathode sales since
further refinement of copper in concentrate
is needed before sale. Molybdenum sales
generally remain open for two or three
months from shipment.
A significant proportion of the Groups

copper cathode sales are made under
annual contracts, priced in line with LME
prices. In copper cathode transactions,
a premium, or in some cases a discount,
on the LME price is negotiated to reflect
differences in quality, logistics and financing
compared with the metal exchanges
standard copper contract specifications.
The Groups marketing

team builds long-term
relationships with core
customers, while maintaining
relationships with trading
companies thatparticipate
inshortertermsales.
INPUTS
Suppliers play a critical role in the Groups

ability to operate, supplying a large range of
products and services from grinding media
to catering at the mine sites.
More information on key inputs is included
onpages19 to 21.
MARKETING
RESTORATION
OUTPUTS
Relationships with trade unions are based

on mutual respect and transparency.
This helps the Group to retain employees
and avoid labour disputes, contributing
to greater productivity and business
efficiency. During 2014, the Group renewed
labour agreements at all of its then mining
operations, except Zaldvar, ensuring stability
until 2018.
The Group undertakes an annual survey
toassess employee satisfaction. Based
on the results, action is taken to improve
thework environment.
More on Employees on pages 61 to 63.
Contractors
The number of contractors working for
Antofagasta varies according to business
needs and the level of construction activity.
As at 31 December 2015, there were
approximately 13,900 contractors working
at the Groups operations and projects.
This was some 30% lower than the
same time last year, principally due to
the completion of construction of the
Antucoya project.
Contractors are vitally important to mining
operations and the Group aims to build
long-term relationships with contractor
companies based on the highest standards.
Safety and health targets are included in
performance contracts and compliance
withsafety and human rights laws and
labour regulations are assessed regularly
byinternal and external audits.
Contractors are vitally

important to mining operations
and the Group aims to build
long-term relationships with
contractor companies based
on the highest standards.
The minimum wage paid by Antofagasta

Minerals to contractor employees is
70% higher than that required by Chilean
law, andcontractor staff have access to
the same facilities as the Groups own
employees at the mine camps.
OTHER INFORMATION
Employees
PROCESSING
Given the sensitive market conditions for

suppliers, emphasis has been placed on
monitoring the suppliers financial health and
ensuring bank guarantees are in place when
deemed necessary.
EXTRACTION
GOVERNANCE
The Group has an open-door policy that

encourages suppliers to raise any issues
orconcerns. Suppliers are audited regularly
to ensure compliance with the law and
Company standards, particularly concerning
safety and health and the environment.
CONSTRUCTION
STRATEGIC REPORT
The Group currently conducts business

with over 5,000 suppliers and is working
with the top suppliers in each category
to ensure the most cost-effective and
efficient solutions are employed across
alloperations. The corporate procurement
team has consolidated all procurement
practices across the operations and
projects. In addition, the team has reduced
the number of suppliers to extract greater
benefits from elected suppliers over a long
period of time. The Group has identified 300
categories across all its mining operations
and construction projects and is negotiating
with its suppliers on each of these.
This strategic approach will allow the Group
to extract greater benefits from its suppliers
over a long period of time. For example, the
Group may develop long-term partnerships
with some suppliers, while others are
managed with a more short-term focus
based on market competition.
EVALUATION
OVERVIEW
Suppliers
EXPLORATION
The Group employs approximately 5,300

people, who work alongside approximately
13,900 contractors at its corporate offices,
operations and projects. Mining is inherently
risky and ensuring the safety and health of
every employee is an absolute priority. It is
an ethical obligation and is central to the
Groups strategic objectives.
The Group has created a variety of initiatives
over the last few years to secure and
develop talent. In particular, the Group
seeks to attract young professionals into the
mining industry and complement their work
experience with workshops and seminars
across different functional areas.
Antofagasta plc 23
Business model
Key relationships
19,200
The number of employees and contractors

working across the Groups operations.
Local communities
Other local stakeholders
It is crucial to have strong relationships built

on trust and mutual understanding with
local communities in the areas where the
Group operates as it is not possible to run a
mine successfully without their co-operation
and agreement.
Positive relationships with all local

stakeholders near the Groups operations
and projects are fundamental to the
smooth operation of the business and
itsfuture growth.
Having clear social policies and regular

contact with community members helps
tomanage potential conflicts and maintains
the Groups social licence to operate.
During 2014, Los Pelambres adopted
a new approach to engagement with
communities. The initiative is called Somos
Choapa (We Are Choapa), the region in
which Los Pelambres is located). In 2015,
the Group signed a framework agreement
with three municipalities under the Somos
Choapas initiative, and has begun assessing
a portfolio of projects for sustainable
development in the region.
More information on this is provided
on pages 59 and 60.
All of the Groups operations appoint a

manager to oversee relationships with
external stakeholders such as the local
authorities, local media and others.
Having clear social policies

and regular contact with
community members helps
tomanage potential conflicts
and maintains the Groups
social licence to operate.
Government and public authorities

Political developments and changes
to legislation or regulations can affect
business, whether in Chile, the UK, or
other countries where the Group has
operations, development projects or
exploration activities.
New and proposed legislation is monitored
to enable the Group to anticipate, mitigate
or reduce possible effects, and to ensure
it complies with all legal and regulatory
obligations. The Group works with industry
bodies to engage with governments
on public policy, laws, regulations and
procedures that may affect its business,
including such issues as climate change and
energy security.
The Group assesses political risk as part of
its evaluation of potential projects, including
the nature of existing foreign investment
agreements. It also monitors political, legal
and regulatory developments affecting its
operations and projects, and utilises internal
and external legal expertise to ensure its
rights are protected.
1 Excludes employees and contractors at joint ventures.
The marketplace
OVERVIEW
Products
STRATEGIC REPORT
The Groups mining operations produce copper with by-products of gold, molybdenum and
silver. Los Pelambres and Centinela produce copper concentrate containing gold and silver,
which is sold to smelters for further processing and refining into copper cathodes, as well as
the production of gold and silver. Copper contained in concentrates made up over 80% of the
Groups copper sales in 2015. Centinela, Antucoya and Zaldvar produce copper cathodes which
are sold directly to fabricators and trading companies. Cathode production is set to increase
during 2016 with Antucoyas ramp-up to full production and the recent acquisition of 50% of
theZaldvar mine. Los Pelambres produces molybdenum concentrate, which is sold to roasters
for further processing.
For more information on the structure of the Groups sales contracts, please see page 22.
GOVERNANCE
Mining division revenue by-product ($3,242.2m)
$1,606.7m
$1,058.9m
$252.0m
$168.9m
Centinela
Molybdenum
Michilla
Gold
$m
$50.4m
Silver
$m
Los Pelambres
1,606.7
Gold Los Pelambres/Centinela
252.0
Centinela
1,058.9
Molybdenum Los Pelambres
105.3
Michilla
168.9
Total copper
Silver Los Pelambres/Centinela
50.4
2,834.5
Global copper consumption by sector1

E
B
C
A Construction
29.3
B Consumer products
28.6
C Electrical and electronic products
19.2
D Transport
12.3
E Industrial machinery
10.6
1S
ource: Wood Mackenzies Q4 2015
Copper Outlook December 2015.
Antofagasta plc 25
OTHER INFORMATION
Los Pelambres
$105.3m
The marketplace
The price of copper is

affected by supply-demand
fundamentals as well as by
financial investors who take
positions on the future value
ofthe metal.
Copper
Gold
Refined copper is used principally in

electrical and thermal applications, as it
is a very good conductor of electricity
and heat, and in a number of metal alloys
such as brass and bronze. The main
consumption areas are construction and
consumer products, which account for
approximately 58% of global copper
demand. Electrical and electronic products,
transport and industrial machinery account
for the balance.
Gold is used as an investment asset, in

jewellery and for industrial and electronic
applications. It can be readily sold on
numerous markets throughout the world
and benchmark prices are generally based
on London Bullion Market Association
(LBMA) quotations.
The price of copper is typically determined

by the major metals exchanges the
London Metal Exchange (LME), the
Commodity Exchange, Inc. (COMEX) and
the Shanghai Futures Exchange (SHFE).
The price of copper is affected by supplydemand fundamentals as well as by financial
investors who take positions on the future
value of the metal. This can lead to volatile
and cyclical movements, as has been seen
during the course of 2015.
Molybdenum
The main use of molybdenum is as a key
alloying element in steel, although it is also
used in other products such as catalysts.
Contract prices are typically based on
price benchmarks such as those reported
by Platts.
OVERVIEW
Market environment
Average LME copper price
$/Lb
3.40
3.20
3.00
2.60
H1 2014
Average $3.14/lb
STRATEGIC REPORT
2.80
H2 2014
Average $3.09/lb
2.40
H1 2015
Average $2.69/lb
2.20
2.00
H1 2015
Average $2.30/lb
1.80
31 Dec 2013
30 Jun 2014
31 Dec 2014
On the demand side the most important

market is China, which accounted for
approximately 46% of global copper
consumption in 2015. Other than China,
Europe and North America remain the key
consumers at 17% and 11% respectively.
The Groups average realised price in 2015
was below the average LME price reflecting
a net negative provisional pricing adjustment
of $295.5 million for the year.
In early 2016, the consensus price forecast

for the year was $2.20/lb, lower than in
2015, with the US dollar remaining strong,
Chinas economic growth under the new
normal uncertain and supply continuing
togrow, albeit slowly.
Copper concentrate
2015 market performance
There was good demand for copper
concentrates and spot treatment and
refining charges (TC/RCs) fell well below
the benchmark rate set at the beginning of
the year. The concentrate market tightened,
in favour of miners, as new smelters ramped
up or were brought online during the year.
As in previous years, a number of supply
disruptions restricted the availability of
concentrates and as the drop in the copper
price reduced the availability of scrap for use
by the smelters, some of them purchased
more concentrates to replace the lost
copper units.
Market outlook
Benchmark TC/RCs for 2016 are $97.35
perdry metric tonne of concentrate and
9.735c/lb of refined copper. This rate is
some 9% lower than the benchmark set
for 2015 and reflects a tighter market and
increased smelter capacity, particularly
in China.
Gold
The gold price declined by more than
11% during 2015, influenced by bearish
sentiment from the wider commodity
complex. Better economic performance
by European and US equity markets in the
first half of the year also weakened demand
for gold as a safe haven investment. In the
months leading up to the US Federal
Reserves rate hike in December, higher
bond yields and the strengthening US dollar
put further downward pressure on gold.
These factors led to significant outflows
from gold Exchange Traded Funds (ETFs)
with almost 100 tonnes leaving ETFs in the
year. Investors sentiment was bearish, with
average net longs reaching their lowest level
since 2003.
Gold averaged $1,160/oz in 2015 compared
with $1,266/oz in 2014 and closed the year
at $1,061/oz. The consensus price forecast
for 2016 is$1,160/oz.
Molybdenum
Molybdenum prices decreased to their
lowest levels for 12 years as a result of
lower demand from the steel industry and
increased mine supply. The price averaged
$6.7/lb for the year, compared with $11.4/lb
in 2014, and the consensus forecast is it will
fall further in 2016 to an average annual price
below $6.0/lb.
Antofagasta plc 27
OTHER INFORMATION
Global mine production accounts for some

85% of total refined supply and grew at a
slightly slower rate than expected due to
the combined effect of mine disruptions,
start-up delays and protracted ramp-ups.
Several producers announced the closure
of higher-cost operations in response to
declining prices. The balance of supply
comes from secondary sources, particularly
in the form of scrap, the availability of which
declined as falling prices led to lower rates
of recycling and some scrap dealers limited
their trading activities.
Market outlook
The general consensus is that the market
will show a small surplus for a couple of
years and then will move into deficit as
supply is constrained by lack of investment
while demand continues to grow. In the
current low-price environment, greenfield
and brownfield projects across the world
have been postponed and further cuts in
production by producers are expected during
the year if the price remains at a low level.
Demand growth will continue to be linked
toChinese consumption.
2015 market performance

The average LME copper price during
2015 was $2.50/lb, representing a 19.8%
decrease compared with the 2014 average.
Prices held up during the first half of the
year, averaging $2.69/lb before declining
over the second half, closing at $2.13/lb at
the end of the year. This fall reflected the
slowdown in China and reduced investment
interest in the commodity sector, which
depressed the copper price even though the
market was nearly in balance and showing
only a small surplus for the year.
31 Dec 2015
GOVERNANCE
Refined copper
30 Jun 2015
Strategy for the mining business
Mining division business strategy

To be an international mining company based in Chile,
focused on copper and related by-products, and recognised
for operational efficiency, value creation and as a preferred
partner in theglobal mining industry.
1 The existing core business

Current strategic focus:
Embed the Safety Model across all operations
toachieve zero fatalities
Implement the Cost and Competitiveness
Programme (CCP) to improve performance
andcompetitive position
2
3
Organic and sustainable growth of the core business

The second pillar of the strategy is to achieve sustainable,
organic growth from further developing the areas around
the Groups existing asset base in Chile: Encuentro Oxides,
Centinela Molybdenum Plant, Los Pelambres Incremental
Expansion and Centinela Second Concentrator.
Proactive and inclusive approach with

communities and other stakeholders to strengthen
sustainable development
Further information onpages 40to47.

The first pillar of the strategy for the mining division
is to optimise and enhance its existing core business:
LosPelambres, Centinela, Antucoya and Zaldvar.
Integrate Zaldvar, focusing on capturing

potential synergies
Growth beyond the core business

The third pillar of the strategy is to seek growth beyond the
Groups existing operations both in Chile and internationally.
The focus is on potential acquisitions of high-quality operating
assets and high-potential early-stage developments.
2 Organic and sustainable growth

Advance projects under construction: Encuentro Oxides
and the molybdenum plant at Centinela
Continue to advance the Groups main brownfield
projects: Los Pelambres Incremental Expansion and
3 Growth beyond the core business

Work to develop the long-term growth pipeline beyond
our existing operations
Monitor the current market environment to assess
potential value accretive acquisitions or joint ventures
OVERVIEW
2015 in Review
Objectives for 2016
The Group regrets that there has been one fatality this year.
The Group is convinced that the Safety Model introduced in 2014
is the right approach and will keep on working with employees,
contractors and suppliers to ensure the effective implementation
ofthe critical controls associated with this model
Zero fatalities
Copper production of 630,300 tonnes is approximately 10% lower

than guidance issued at the beginning of 2015
Copper production of 710740,000 tonnes (including 50% of

Zaldvar), while reducing cash costs before by-product credits
to$1.65/lb from $1.81/lb in 2015
Group net cash costs for the full year 2015 of $1.50/lb, in line with
initial guidance for the year
Continue working on the capture of newly identified savings,

aimingto add $160 million of cost reductions this year
Improve safety standards through strengthening application

oftheSafety Model
STRATEGIC REPORT
GOVERNANCE
During 2015, the Group implemented a corporate initiative to

improve its competitive position and to achieve structural cost
savings. The Cost and Competitiveness Programme (CCP) has
four areas of focus: services productivity, operational & maintenance
management, corporate & organisational effectiveness and energy
efficiency. In 2015, the CCP achieved $150 million in cost savings
Michilla put on care and maintenance at the end of 2015
Antucoya started production in September and ramp-up reached

58% of plant design capacity by the end of the year
Reach design capacity and stabilise all key performance indicators

to achieve 2016 production plan
Advanced Encuentro Oxides pre-stripping and commenced

construction of processing facility. Started construction of the
molybdenum plant at Centinela
Advance construction of Encuentro Oxides and Molybdenum Plant,

but at a slower rate than originally planned, to reduce expenditure
in2016. Completion expected in 2017
Completed environmental baseline study and advanced engineering

and EIA studies for the use of sea water in the LosPelambres
Incremental Expansion project
Submission of Environmental Impact Assessment (EIA)

forLosPelambres Incremental Expansion project and advance
feasibility study for completion in 2017
Completed the pre-feasibility study for the Centinela Second

Concentrator and started the feasibility study. Submitted EIA
for approval
Advance Centinela Second Concentrator feasibility study

forcompletion in 2017. EIA approval expected in 2016
Completed installation of secondary and tertiary crushers

atCentinela Concentrator
Reach throughput capacity of 105,000tpd
2015 in Review
Objectives for 2016
The acquisition of 50% of Zaldvar is a major milestone in the

history of the Group and the first acquisition of an operating
company since the acquisition of Michilla in 1980
Contribute 5055,000 tonnes to Group production and

increasethereafter
Continued international exploration programme with existing

andnew joint venture partners
Continue current exploration programmes
Consolidated full ownership of the Twin Metals project and

advanced optimisation studies
Continue with optimisation of the Twin Metals project and advance

the permitting process
Fully integrate Zaldvar into the Groups operating practices

Identify potential new growth opportunities in Chile and abroad
Antofagasta plc 29
OTHER INFORMATION
Objectives for 2016
2015 in Review
Key performance indicators
Group revenue
11
12
13
141
3,394.6
Performance in 2015
Revenue fell 34.0% in 2015, mainly
dueto lower realised copper prices,
lower copper sales volumes and
reduced gold by-product revenues.
5,145.6
Why it is important
Revenue represents the income
fromsales, principally from the
sale ofcopper as well as the
gold, molybdenum and silver
byproduct credits.
5,917.6
$3,394.6m
6,740.1
Performance is measured against

thefollowing financial, operational
and sustainability objectives:
Financial KPIs
6,076.0
The Group uses KPIs to assess

performance in terms of meeting its
strategic and operational objectives.
152
EBITDA
$890.7m
890.7
2,141.4
2,702.2
3,864.4
Performance in 2015
EBITDA fell by over 58% in 2015
asa result of lower production,
lowerrealised prices and slightly
higherunitoperating costs.
3,660.5
Why it is important
This is a measure of the Groups
underlying profitability.
11
12
13
141
152
Earnings per share1
0.6 cents
11
12
13
142
n analysis of Financial KPIs is included within the Financial review

A
onpages64 to 68.
1 Restated.
0.6
42.8
66.9
105.2
Performance in 2015
EPS was impacted by lower profitability
as costs rose and realised prices fell.
125.4
Why it is important
This is a measure of the profit
attributable to shareholders.
152
INPUTS
EXPLORATION
EVALUATION
EXTRACTION
PROCESSING
Lost time injury frequency rate4
Why it is important
Copper is the Groups main
product and its production is
akeyoperational parameter.
Why it is important
Safety is a key priority for the Group
with the LTIFR being one of the principal
measures of performance.
Water consumption5
Why it is important
This is a key indicator of operational
efficiency and profitability.
Why it is important
Water is aprecious resource and
the Group is focused on maximising
efficientuse and utilising the
most sustainable sources as
production grows.
1.98
13
14
15
Emissions6
Why it is important
Expansion of the Groups mineral
resources base has supported
itsstrongorganic growth pipeline.
Why it is important
The Group recognises the risks and
opportunities of climate change and
the need to measure and mitigate its
greenhouse gas (GHG) emissions.
The Group is investing in renewable
energy projects both to address rising
costs and as part of its approach to
mitigate climate change.
24.7
26.8
24.4
22.6
25.5
13
14
15
14
15
n analysis of the Groups copper production and cash costs is included inthe
A
Operational review on pages 39to51 and within the Financial review on pages
64to 68.
11
12
13
14
3.24
2.92
2.76
18.7
17.9
16.2
13
2.98
12
Performance in 2015
Carbon emission intensity rose from
2014 primarily due to lower copper
production at the Groups operations.
3.09
11
15.2
3.24 tonnes
13.7
18.7bn tonnes
12
OTHER INFORMATION
Mineral resources3
11
20.6
15
15.9
1.50
1.43
14
20.6
13
Continental
Sea
20.2
12
Performance in 2015
Consumption of water decreased
during2015, in line with the Groups
efforts tomaximise water efficiency.
20.0
11
1.03
1.02
1.36
45.2m m3
15
urther information on safety and health, water consumption andcarbon

F
emissions is provided in the Managing a sustainable business section
onpages 53to 63.
ineral resources a review of the Groups exploration activities is set out

M
inthe Operational review on pages 39to51, and the ore reserves and mineral
resources estimates, along with supporting explanations, are set out on
pages186 to 193.
2N
et cash costs are an industry measure of the cost of production.
3M
ineral resources relating to the Groups subsidiaries on a 100% basis, and Zaldvar
ona50%basis.
Net cash costs2
12
1.9
11
15
$1.50/lb
2.1
14
Performance in 2015
The LTIFR of the Group in 2015 was
1.98 accidents with lost time per million
hours worked. One fatality was reported
in 2015 and is not acceptable: the Group
continues to target zero fatalities across
all operations.
2.6
704.8
13
3.2
721.2
12
630.3
709.6
1.98
GOVERNANCE
11
Performance in 2015
The mineral resource base grew by
over 6%, reflecting the incorporation
ofadditional resources at Los Volcanes
and the acquisition of the Zaldvar mine.
OUTPUTS
STRATEGIC REPORT
640.5
630,300 tonnes
Performance in 2015
Net cash costs rose 4.9% compared
to 2014, as lower realised by-product
prices and lower gold production
outweighed the lower cash costs
beforeby-product credits.
RESTORATION
Sustainability KPIs
Copper production
Performance in 2015
Copper production decreased
by10.6%in 2015, primarily due
tolowerproduction at Los Pelambres
and Centinela. Attributable production
for theyear was 4,400 tonnes
from Zaldvar.
MARKETING
OVERVIEW
Operational KPIs
CONSTRUCTION
4T
he Lost Time Injury Frequency Rate is the number of accidents with lost time during
theyearper million hours worked.
5W
ater consumption relates to the mining division only.
6 Total CO2 emissions per tonne of copper produced. Data relates to the mining division only.
Antofagasta plc 31
Risk management
Risk and Compliance Management Framework

Effective risk and compliance management is an essential
element of the Groups operations and strategy. The accurate
and timely identification, assessment and management of risks
are key to the operational and financial success of the Group.
The Risk and Compliance Management Department:
Provides guidelines, standards and best practice

examples of risk and compliance management
atthe corporate and business unit levels
Is responsible for risk and compliance
management systems
Maintains the Groups risk register
Organises and promotes risk and

compliance workshops
Supervises the operations
Reviews the effectiveness of mitigating actions
Supports internal stakeholders in key
strategic decisions
The Groups risk and compliance management framework can be divided into three tiers:
Governance
Risk management
Compliance
Communicating the
Groups vision, strategy and
objectives throughout the
organisation, and putting in
place appropriate governance
structures, policies and
procedures to embed key
aims and objectives.
Ensuring that there are the

structures and processes in
place to identify and evaluate
risks, and that appropriate
controls and mitigation
techniques are developed to
address those risks.
Ensuring that the Groups

internal policies, procedures
and control activities, as
well as all relevant laws and
regulations, are adhered to.
Ensuring that key risks, and

the performance in managing
those risks, are reported
on a timely basis to the
relevant parties.
INPUTS
EXPLORATION
EVALUATION
CONSTRUCTION
EXTRACTION
PROCESSING
MARKETING
RESTORATION
OUTPUTS
OVERVIEW
Risk management
Compliance Model
The Board is responsible for determining

the nature and extent of the significant
risks that the Group will accept in order
to achieve its strategic objectives, and
for maintaining sound risk management
and internal control systems. The Board
receives detailed analysis of key matters
for consideration in advance of Board
meetings. This includes reports on the
Groups operational performance, including
safety and health, financial, environmental,
legal and social matters, key developments
in the Groups exploration and business
development activities, information on the
commodity markets, updates on talent
management and analysis of financial
investments. The regular provision of this
information allows the early identification
of potential issues and assessment of
anynecessary mitigating actions.
The Risk and Compliance Management

Department has responsibility for risk and
compliance management systems across
the Group. It maintains the Groups risk
register, which specifies the strategic
risks that represent the most significant
threats to the Groups performance and
achievement of its strategy, along with any
necessary mitigation activities. The risk
register is continuously updated and annual
strategic risk workshops are held at which
senior management from across the
business review the Groups key strategic
risks and related mitigation activities.
The Risk and Compliance Management
Department reports quarterly to the Audit
and Risk Committee on the overall risk
management process, including a detailed
update of key risks, mitigation activities
andthe actions being taken.
The Groups Compliance Model applies

to both employees and contractors. It is
clearly defined and communicated regularly
through internal communication channels,
as well as being available on the Groups
website. All contracts with contractors
include clauses relating to ethics and crime
prevention to ensure adherence to the
Groups Compliance Model.
The Audit and Risk Committee assists the

Board by reviewing the effectiveness of the
risk management process and monitoring
key risks and mitigation procedures.
The Chairman of the Audit and Risk
Committee reports to the Board following
each Committee meeting, allowing the
Board to understand and, if necessary,
further discuss the matters considered
indetail by the Committee.
The General Managers of each of the

operations have overall responsibility for
leading and supporting risk management.
Risk Champions within each operation have
direct responsibility for risk management
processes in their operations and for
the continuous update of individual
business risk registers, including relevant
mitigation activities. The owners of the
risks and controls at each business unit
are identified, providing an effective and
direct management of risk. As part of this
process, each operation holds its own
annual risk workshop in which the business
units risks and mitigation activities are
reviewed in detail and updated if necessary.
Workshops are also used to assess key
risks that may affect relationships with
stakeholders, limit resources, interrupt
operations and/or negatively affect potential
future growth. Mitigation techniques for
the significant strategic and business unit
risks are annually reviewed by the risk
management department.
Training on key risk areas (ethics,

anti-corruption and anti-trust matters)
Investigating all reports made
by whistleblowers
Conflict of interest assessment and
due diligence on all business partners
Updating and reviewing all employees
conflict of interest statements
Bolstering the compliance programme
and systems
Third party review of the Crime
Prevention Model
Policies and processes are in place to
ensure the proper management of any
non-compliance exposure.
3 Whistleblowing
Employees and external stakeholders
can report concerns of irregular conduct
or ethical issues through the Companys
intranet, or by email, letter or using a
dedicated hotline. Every complaint is
investigated, the findings are reported
tothe Ethics Committee and, if required,
action is taken. Measures are taken to
ensure the security and confidentiality of
employees for the duration of the process,
safeguarding employees and providing
greater transparency.
Antofagasta plc 33
OTHER INFORMATION
urther information on the Board and its

F
Committees is given in the Governance section
on pages 69 to 116.
The Board regularly reviews Group

compliance with all relevant laws and
regulations, internal policies, procedures
and control activities. A formal risk
assessment is conducted at least once
ayear at all of the Groups operations, and
all risks are reported and reviewed quarterly
by the Audit and Risk Committee.
2 The Crime Prevention Model

This model ensures compliance with the
anti-bribery and anti-corruption laws in
the United Kingdom and Chile. The Vice
President of Finance and Administration
isresponsible for overseeing, defining and
implementing the Model. As part of the
Model, the Group regularly undertakes
thefollowing activities:
The Code of Ethics sets out the Groups

commitment to undertake business
in a responsible and transparent
manner. The Code requires honesty,
integrity and accountability from all
employees and contractors and includes
guidelines for identifying and managing
potential conflicts of interest. An Ethics
Committee comprising members of
senior management is responsible for
implementing, developing and updating
the Code and monitoring compliance.
The Code and other compliance matters
form part of the induction programme
fornew employees.
1 The Code of Ethics

This code sets out the Groups values
andprovides guidelines on behaviour
forallemployees and contractors.
GOVERNANCE
These processes allow the Board to

monitor effectively the Groups major
risks and related mitigation procedures,
and assess the acceptable level of risk
that arises from the Groups operations
and development activities. Quarterly risk
management reports are sent to the Board.
The Compliance Model comprises

offive pillars:
STRATEGIC REPORT
Governance
Risk management
4 Communication and Training Programme

The Group has a comprehensive training programme to ensure
that the policies and procedures of the Compliance Model are
understood and embedded in the culture of the organisation.
The programme emphasises the right to know and there are
measures in place to bolster the skills required to ensure its
effective implementation.
5 Compliance Risks and Control Assessment
The objective of the Compliance Risks and Control Assessment
isto identify, develop and improve internal controls to prevent
potential risks. This assessment is performed at least annually.
The Compliance Model is regularly monitored and reviewed
internally as well as by external parties. The strong performance
ofthe Compliance Model has enabled it to be certified in Chile.
The Model is regularly reviewed internally and by third parties,
and on matters relating to corruption, it has been certified under
Chileananti-corruption legislation.
Areas of focus during 2015 and development

of key risks
The focus was on consolidating the risk management
processes, which included the following:
Working to improve from maturity level 4 to maturity
level5, the top level of the Risk Maturity Model
Expanding risk analysis to incorporate new business
areas and widen coverage
Improving key risk controls and taking action to
reduce the impact and/or probability of identified risks,
particularly through the use of preventive action plans
Updating and improving Disaster Recovery Plans and
Business Continuity Plans
Establishing risk management training programmes
forkey users
Following up agreed actions for materialised risks
Compliance Model
Code of Ethics
Crime Prevention Model
Code of Ethics
Crime Prevention Handbook
Conflict of Interest Guidelines
Anti-corruption clauses in contracts
Gifts and Hospitality Guidelines
Due diligence process, including

global checking
Antitrust PEP Facilitation
Fees Guidelines
Including compliance matters in the Groups

training programme
Receiving certification for the third consecutive year of
the Crime Prevention Model, as required by Chilean law
Strengthening compliance processes by establishing best
practices, holding training workshops for key exposed
areas and implementing new guidelines
urther information about the Groups risk management systems
F
isgiveninthe Governance section on pages 69 to 116 and in the
Managingasustainable business section on pages 53 to 63. Further
detailed disclosure in respect of financial risks relevant to the Group
are set out inNote 26 to the financialstatements.
Whistleblowing Channels
Reporting channels (web, telephone hotline, email)

Methodology of investigation complaints and reports
Monitoring analysis of complaints and improving internal control
Communication and Training Plan
Communications (news, intranet, posters)

Training programme induction of new employees
Compliance Risk and Control Assessment
Identification of risks and controls

Assessment of risks and controls, and improvement of the process
1 In accordance with the Risk Maturity Model developed by Deloitte based on international
standards such as COSO ERM, ISO 31000 and others.
INPUTS
EXPLORATION
EVALUATION
CONSTRUCTION
EXTRACTION
PROCESSING
MARKETING
RESTORATION
OUTPUTS
OVERVIEW
Principal risks and uncertainties

Set out below are the Groups principal risks and related mitigation techniques.
The Board has carried out a robust assessment of the principal risks set out below.
Risk
Mitigation
Application to strategy
Community relations
2
3
GOVERNANCE
The Group has dedicated teams at its central office and at each of its operations.
These establish and maintain relations with local communities based on trust and mutual
benefit throughout the mining lifecycle, from exploration to final remediation. The Group seeks
to identify any potentially negative operational impacts and minimise these through responsible
behaviour. This means acting transparently and ethically, prioritising the safety and health of its
employees and contractors, promoting dialogue, complying with commitments to stakeholders
and establishing mechanisms to prevent or address a crisis. These steps are undertaken in the
early stages of each project and continue throughout the life of each operation. The Group also
contributes to the development of communities in the areas of influence in which it operates,
particularly through human capital development the education, training and employment
of the local population. The Group endeavours to communicate clearly and transparently
with local communities in line with the established Community Relations Plan, including
the use of a grievance management process, local perception surveys, local media and
community engagement.
STRATEGIC REPORT
Failure to identify and manage

local concerns and expectations
can have a negative impact on
the Group. Relations with local
communities and stakeholders
affect the Groups reputation
and social licence to operate
and grow.
etails of the Groups community relations activities are included in the

D
Managing a sustainable business section on pages 53 to 63.
Strategic resources
Technological and innovative solutions, such as using sea water in the Groups mining
operations, can help mitigate exposure to potential scarcity of resources.
Access to energy is a priority for the Group and during 2014 and 2015, it secured several
sources of non-traditional energy such as wind and solar power.
2
3
Information on the Groups arrangements for the supply of key inputs are included
withinthe Key inputs section on pages 19 to 21, and details of significant operational
orcost factors related to key inputs are included within the Operational review on
pages39 to 52.
OTHER INFORMATION
A significant portion of
the Groups input costs
are influenced by external
market factors.
Contingency plans are in place to address any short-term disruptions to strategic resources.
The Group commences early negotiations in supply contracts for key inputs to ensure supply
continuity. Certain key supplies are purchased from several sources to mitigate potential
disruption arising from exposure to a single supplier.
Operational
Mining operations are subject
to a number of circumstances
not wholly within the Groups
control. These include damage
to or breakdown of equipment
or infrastructure, unexpected
geological variations or technical
issues, extreme weather
conditions and natural disasters,
any of which could adversely
affect production and/or costs.
The key risks relating to each operation are identified as part of the regular risk review
process undertaken by the individual operations. This process also identifies appropriate
mitigation techniques for such risks. Monthly reports to the Board provide a variance analysis
of operational and financial performance, allowing potential key issues to be identified in
goodtime and any necessary actions, such as monitoring or control activities, to take place.
The Group has a Business Continuity Plan and Disaster Recovery Plan for all key processes
within its operations in case of crisis or natural disaster. The Group also has insurance to
provide protection from some, but not all, of the costs that may arise from such events.
Disruption to the supply of any

of the Groups key strategic
inputs such as electricity,
water, fuel, sulphuric acid
and mining equipment could
have a negative impact on
production. Longer term, any
restrictions on the availability
of key strategic resources such
as water and electricity could
affect the Groups opportunities
for growth.
2
3
etails of the performance of each of the Groups operations are included within
D
theOperational review on pages 39 to 52.
Antofagasta plc 35
Risk management
Risk
Mitigation
Project management
Failure to effectively manage
the Groups development
projects could result in delays
in the start of production and
cost overruns.
The Group has a project management system consisting of standards, manuals and
procedures containing the best practices applicable and enforceable in all phases of
project development. The project management system supports the decision-making
process by balancing risk versus benefit, increasing the likelihood of success and providing
a common defining language and standards. All geometallurgical models are reviewed
byindependent experts.
Additionally, during the project lifecycle, quality checks for each of the standards applied are
carried out by a panel of experts from within the Group. This panel reviews each feasibility
study to assess the technical and commercial viability of the project. Detailed progress reports
on ongoing projects are regularly reviewed, including assessments of progress against key
project milestones and performance against budget.
2
3
etails of the progress of the Groups projects are included within the
D
Operationalreviewon pages 39 to 51.
Political, legal and regulatory

The Group may be affected
by political instability and
regulatory developments in
the countries in which it is
operating, pursuing projects
or conducting exploration
activities. Issues regarding
the granting of permits or
amendments to permits
already granted, and changes
to the legal environment or
regulations, could adversely
affect the Groups operations
and development projects.
The Group assesses political risk as part of its evaluation of potential projects, including the
nature of any foreign investment agreements. Political, legal and regulatory developments
affecting the Groups operations and projects are monitored on a continuous basis. The Group
operates in full compliance with the existing laws, regulations, licences, permits and rights in
each country in which it operates.
The Group monitors proposed changes in government policies and regulations and belongs
toseveral associations that consult with the government on these changes.
2
3
etails of any significant political, legal or regulatory issues that impact the Groups
D
operations are included within the Operational review on pages 39 to 52.
Safety and health

Safety and health incidents
could result in harm to the
Groups employees, contractors
or to local communities.
Ensuring their safety and
wellbeing is first and foremost
an ethical obligation for the
Group as stated in the Charter
of Values.
Poor safety records or
serious accidents could have
a long-term impact on the
Groups morale, reputation
and production.
Safety and health risk management procedures are being strengthened, with particular focus
on preventing fatalities and the early identification of risks.
The corporate Safety and Health department provides a common strategy to the Groups
operations and co-ordinates all safety and health matters. The Group has a Significant Incident
Report system which is an important part of the Groups overall approach to safety.
This approach includes a goal of zero fatalities and minimising the number of accidents.
This goal requires all contractors to comply with the Groups Occupational Health and
Safety Plan, which is monitored through monthly audits and supported by regular training
and awareness campaigns for employees, contractors, and employees families and local
communities, particularly with regard to road safety.
2
3
urther information about the Groups activities in respect of safety and health
F
issetoutin the Managing a sustainable business section on pages 53 to 63.
Environmental management
An operational incident that
damages the environment
could affect the Groups
relationship with local
stakeholders and its reputation,
undermining its social licence
tooperate and to grow.
The Group operates in
challenging environments,
including the Atacama Desert
where water scarcity is a
key issue.
The Group has a comprehensive approach to incident prevention. Relevant risks are assessed,
monitored and controlled. The Group works to raise awareness among employees and
provide training to promote operational excellence. Potential environmental impacts are key
considerations when assessing project viability and the integration of innovative technology in
the project design to mitigate these effects is encouraged. The Group pioneered the use of sea
water for mining operations in Chile and has installed capacity to produce thickened tailings at
Centinela as it strives to ensure maximum efficiency in water use, achieving high rates of reuse
and recovery.
urther information in respect of the Groups environmental activities is
F
setoutintheManaging a sustainable business section on pages 53 to 63.
2
3
INPUTS
EVALUATION
CONSTRUCTION
EXTRACTION
PROCESSING
MARKETING
Mitigation
RESTORATION
OUTPUTS
Growth opportunities
The Group assesses a wide range of potential growth opportunities, both internal projects
and external opportunities. A rigorous assessment process is followed to evaluate all potential
business acquisitions, which are subjected to different stress test scenarios for sensitivity
analysis and to determine the risks associated with the project or opportunity.
The long-term commodity price

forecast and other assumptions
used when assessing potential
projects and other investment
opportunities have a significant
influence on the forecast return
on investment and if incorrectly
estimated could result in the
wrong decisions being made.
The Groups Business Development Committee reviews potential growth opportunities

andpotential transactions, and approves or recommends them within authority levels
setbythe Board.
2
3
etails of the Groups growth opportunities are set out in the Operational
D
reviewonpages 39 to 51.
STRATEGIC REPORT
The Group may fail to

identify attractive acquisition
opportunities or may select
inappropriate targets.
OVERVIEW
Risk
EXPLORATION
Commodity prices
The Group considers exposure to commodity price fluctuations to be an integral part of the
business and its usual policy is to sell its products at prevailing market prices. The Group
monitors the commodity markets closely to determine the effect of price fluctuations on
earnings, capital expenditure and cash flows. Very occasionally the Group uses derivative
instruments to manage its exposure to commodity price fluctuations when it feels it to be
appropriate. The Group runs its business plans under various different commodity price
scenarios and develops contingency plans as required.
As at the end of 2015, the Group held no open commodity hedging positions.
2
3
he sensitivity of the Groups earnings to movements in commodity prices is set out

T
inNote 26 to the financial statements.
The strengthening of
the Chilean peso may
negatively affect the Groups
financial results.
As copper exports account for over 50% of Chiles exports, there is a correlation between the
copper price and the US dollar/Chilean peso exchange rate. This natural hedge partly mitigates
the Groups foreign exchange exposure. However, the Group closely monitors the foreign
exchange markets and the macroeconomic variables that affect it and on occasion maintains
afocused currency hedging programme to reduce short-term exposure to fluctuations in the
US dollar against the Chilean peso.
etails of the Groups currency hedging arrangements are shown in Note 26 to the
D
financial statements.
The Group conducts exploration programmes both in Chile and other countries. The Group
has entered into early-stage exploration agreements and strategic alliances with third parties
in a number of countries and has also acquired equity interests in companies with known
geological potential. The Group focuses its exploration activities on stable and secure countries
to reduce country risk exposure.
review of the Groups exploration activities is set out in the Operational review
A
onpages50 and 51.
2
3
Antofagasta plc 37
OTHER INFORMATION
Identification of new mineralresources

The Group needs to identify
new mineral resources to
ensure continued future growth
and does so through exploration
and acquisition. There is a risk
that exploration activities may
not identify sufficient viable
mineral resources.
Foreign currency
The Groups sales are mainly
denominated in US dollars and
some of the Groups operating
costs are in Chilean pesos.
GOVERNANCE
The Groups results are heavily

dependent on commodity
prices principally copper and,
to a lesser extent, gold and
molybdenum. The prices of
these commodities are strongly
influenced by a variety of
external factors, including world
economic growth, inventory
balances, industry demand and
supply, possible substitution, etc.
Risk management
Risk
Mitigation
Ore reserves and mineral resources estimates

The Groups ore reserves
and mineral resources
estimates are subject to a
number of assumptions and
estimates, including geological,
metallurgical and technical
factors, future commodity
prices and production costs.
Fluctuations in these variables
may result in some reserves
or resources being deemed
uneconomic, which could
leadto a reduction in reserves
and/or resources.
The Groups reserves and resources estimates are updated annually to reflect material
extracted during the year, the results of drilling programmes and any revised assumptions.
The Group follows the Australasian Joint Ore Reserves Committee (JORC) Code in
reportingits ore reserves and mineral resources, which requires that the reserves and
resources estimates are based on work undertaken by a Competent Person, as defined
by the Code. In addition, the Groups reserves and resources estimates are subject to
acomprehensive programme of internal and external audits.
2
3
he ore reserves and mineral resources estimates, along with supporting explanations,
T
are set out on pages 186 to 193.
Talent management and labour relations

The Groups highly skilled
workforce and experienced
management team are
critical to maintaining current
operations, implementing
development projects,
achieving long-term growth
and preserving current
operations without major
disruption. Managing talent
and maintaining a high-quality
labour force is a key priority
for the Group and any failures
in this respect could have
a negative impact on the
performance of the existing
operations and future growth.
There are long-term labour agreements in place with employees at each of the Groups mining
operations, which help to ensure labour stability. These agreements were last renegotiated in
2014 for a period of up to four years for all of the Groups operations, except for Zaldvar which
was acquired during 2015 and whose labour agreement continues until 2017.
The Group seeks to identify and address labour issues that may arise throughout the period
covered by existing labour agreements and to anticipate any potential issues in good time.
Contractors are an important part of the Groups workforce and under Chilean law are
subject to the same duties and responsibilities as the Groups own employees. The Groups
approach is to treat contractors as strategic associates and its goal is to build long-term
mutually beneficial contractor relationships. The Group maintains constructive relationships
with its employees and the unions that represent them through regular communication and
consultation. Union representatives are regularly involved in discussions about the future of
the workforce.
2
3
The Group develops the talents of its employees through training and development, invests
in initiatives to widen the talent pool and focuses on maintaining good relationships with
employees, unions and contractors.
The Groups performance management system is designed to provide reward and
remuneration structures and personal development opportunities to attract and retain key
employees. The Group has in place a talent management system to identify and develop
internal candidates for critical management positions, as well as processes to identify
suitableexternal candidates where appropriate.
etails of the Groups relations with its employees and contractors are set out
D
withintheManaging a sustainable business section on pages 53 to 63 and within
theOperational review onpages39to 52.
Long-term viability statement

To address the requirements of provision C.2.2 of the 2014 Corporate Governance
Code, the Directors have assessed the prospects of the Group over a period of
five years.
Mining is a long-term business and timescales can run into decades. The Group
maintains life-of-mine plans covering the full remaining mine life for each of
the mining operations. More detailed medium-term planning is performed for
a fiveyear time horizon (as well as very detailed annual budgets). Accordingly,
aperiod of five years has been selected as the appropriate period over which
toassess the prospects of the Group.
When taking account of the impact of the Groups current position on this viability
assessment, the Directors have considered in particular its financial position,
including its significant balance of cash, cash equivalents and liquid investments
and the borrowing facilities in place, including their terms and remaining durations.
When assessing the prospects of the Group, the Directors have considered the
Groups copper price forecasts, the Groups expected production levels, operating
cost profile, capital expenditure and financing plans. The Directors have taken into
consideration the Groups key risks which could impact the prospects of the Group
over this period, with the most relevant to this viability assessment considered
to be risks to the copper price outlook. Robust down-side sensitivity analyses
have been performed, assessing the impact of a significant deterioration in the
copper price outlook over the five-year period. This analysis has focused onthe
existing asset-base of the Group, without factoring in potential development

projects, which is considered appropriate for an assessment of the Groups ability
to manage the impact of a depressed economic environment. These stress-tests
allindicated results which could be managed in the normal course of business.
Based on their assessment of the Groups prospects and viability, the Directors
confirm that they have a reasonable expectation that the Group will be able
to continue in operation and meet its liabilities as they fall due over the next
five years.
Going concern
The Directors also considered it appropriate to prepare the financial statements
onthe going concern basis, as explained in the Basis of preparation paragraph
The Strategic Report has been approved by the Board and signed onits behalf by:
Jean-Paul Luksic
Chairman
14 March 2016
INPUTS
EXPLORATION
CONSTRUCTION
EVALUATION
EXTRACTION
PROCESSING
MARKETING
RESTORATION
OUTPUTS
Operational review
Mining division
Tonnes of copper
produced in 2015.
PERU
PACIFIC
OCEAN
BOLIVIA
CALAMA
ANTUCOYA
MICHILLA
CENTINELA
Esperanza port
Mejillones
$1.50/lb
STRATEGIC REPORT
630,300
OVERVIEW
All of the Groups

operations are located
in the Antofagasta
Region of northern
Chile except for its
flagship operation,
LosPelambres, which
isin the Coquimbo
Region of central Chile.
GOVERNANCE
ANTOFAGASTA
REGION
ANTOFAGASTA
Net cash costs in 2015.
ZALDVAR
ANTOFAGASTA
REGION
LA SERENA
OTHER INFORMATION
COQUIMBO
REGION
ILLAPEL
Punta Chungo port
LOS VILOS
LOS PELAMBRES
COQUIMBO
REGION
ARGENTINA
Antofagasta operations
and projects
Capital city
CHILE
SANTIAGO
Cities and
town centres
Antofagasta Minerals ports
Antofagasta plc 39
Operational review
Mining division
Los Pelambres
60% owned
Los Pelambres is a sulphide deposit in Chiles Coquimbo Region,

240 km north of Santiago. It produces copper concentrate
(containing gold and silver) and molybdenum concentrate
through a milling and flotation process.
2
3
Mine lifecycle position

Remaining mine life: 22 years
Exploration
Evaluation
Construction
2015 Production
Production
2015 Financials
2016 Forecast
Copper
Molybdenum
Net cash costs
Operating profit
Copper
Molybdenum
Tonnes (2014 391,300)
Tonnes (2014 7,900)
(2014 $1.18/lb)
(2014 $1,337.8m)
Tonnes
Tonnes
Gold
Copper
production
Net cash costs
Gold
Net cash costs
Ounces (2014 66,500)
000 tonnes
$/lb
Ounces
$/lb
1.25
12
1.23
16E
1.18
15
(58.5)%
$555.0m
1.16
14
0.86
13
363.2
391.3
12
4.2%
$1.23/lb
355-365
405.3
(22.7)%
51,400
27.8%
10,100
403.7
(7.2)%
363,200
13
14
15
16E
355,000 8,000
365,000 9,000
45,000
55,000
1.25
INPUTS
EXPLORATION
EVALUATION
CONSTRUCTION
EXTRACTION
Operating profit
El Mauro tailings dam
Operating profit at Los Pelambres was

$555.0 million in 2015, compared with
$1,337.8 million in 2014, reflecting lower
realised prices and lower production.
Realised copper prices fell to $2.24/lb
from $2.95/lb, significantly impacting
operating profits, with unit cash costs
slightly increasing.
The Mauro tailings dam began operating in

2008. Since then there have been a series
of civil claims filed by some members of the
Caimanes community seeking to stop the
operation of the dam. Two ongoing claims
allege the dam interferes with the rights
of the Caimanes community: one on the
grounds that it affects the flow and quality of
the Pupo stream; and the other claiming that
the tailings dam wall would not withstand an
extreme seismic event. These claims have
been through various courts and stages of
appeal. Los Pelambres has always complied
with all applicable laws, regulations and
controls and has successfully defended
itsright to continue operating the dam.
Production
Molybdenum production for the year of

10,100 tonnes was the highest since 2012
and a 27.8% increase on 2014 as a new,
higher grade area of the pit was mined.
Gold production was 22.7% lower in 2015
at 51,400 ounces, compared with 66,500
ounces in 2014.
In May 2015, the Court of Appeals of

LaSerena reversed a previous ruling by
the trial Court of Los Vilos concluding that
the design, construction and operation of
the Mauro tailings dam had been properly
undertaken according to best practices and
that there was no evidence or indication
that the dam constituted a threat to the
Caimanes community. The decision of
the Court of Appeal was then appealed
by the Plaintiffs to the Supreme Court.
The Supreme Court is expected to hear
oralargument and issue a final decision
during the first half of 2016.
Engagement with the
Caimanescommunity
In April 2015, Los Pelambres initiated
conversations with representatives of the
Caimanes community and in September
these were expanded to a formal consultation
process with the whole community. The
focus of the consultation was to discuss
the communitys concerns regarding the
Mauro dam, including the flow of a local
stream and other topics of common interest,
with the process being monitored by the
Chilean branch of Transparency International.
The community and the Company discussed
the implementation of initiatives to improve
the communitys access to water, address
the concerns of some members of the
community about the safety of the dam,
improve the emergency communications
plan and to set-up a development fund
forthe benefit of the community and local
residents. Considerable progress has been
made and agreement on a lasting solution to
this long-standing issue is expected in 2016.
Total capital expenditure in 2015 was

$203.1 million, which included the
completion of the new mine facilities,
arelocation of the water pumping
system atthe Mauro tailings dam and the
replacement of a section of the tailings
pipeline. Capital expenditure is expected
to be approximately $185 million in 2016,
reflecting slightly reduced sustaining
investments in line with 2015.
ore details on this project can be found
M
onpage49.
Antofagasta plc 41
OTHER INFORMATION
Cash costs before by-product credits were

$1.51/lb, 3.8% lower than in 2014, primarily
due to targeted cost savings being achieved
and lower input prices such as energy and
diesel. For the full year, energy costs were
$116/MWh (including transmission and other
charges), compared with $149/MWh in
2014. Net cash costs for the full year 2015
were $1.23/lb compared with $1.18/lb
in 2014. This increase is mainly due to
lower gold production and lower realised
molybdenum prices, which almost halved.
In October 2014, the Supreme Court, by

split decision, upheld an appeal filed by a
section of the Caimanes community, and
ordered Los Pelambres to submit a plan of
works to ensure the operation of the tailings
dam does not affect the normal flow and
quality of the Pupo stream. In November
2014, Los Pelambres submitted this plan
to the Civil Court in Los Vilos. In March
2015, that Court found that the plan was
notsufficient to address the requirements
of the Supreme Court order and ordered the
partial or total demolition of the tailings dam
wall. Los Pelambres appealed that decision,
and in December 2015, the Appeal Court
of La Serena ordered that a court appointed
engineer review the work plan submitted
by Los Pelambres and to propose remedies
should their opinion be that the work plan
isdeficient. A decision is expected in 2016.
Claim that the dam wall would not

withstand extreme seismic events
Cash costs
Claim that the dam affects the flow and

quality of the Pupo stream
OUTPUTS
GOVERNANCE
Copper production was 363,200 tonnes in

2015, which was slightly below the forecast
for the year, and 7.2% below production
in 2014 of 391,300 tonnes. The decrease
in production was primarily due to lower
throughput in the first quarter as a result
ofcommunity protests as well as the higher
proportion of harder ore being processed
during 2015 which also affected recoveries.
RESTORATION
STRATEGIC REPORT
Legal update
MARKETING
OVERVIEW
2015 Performance
PROCESSING
Operational review
Mining division
Legal update Cerro Amarillo

waste dump
In 2004, Los Pelambres received all of the
required authorisations from the Chilean
government to deposit a waste-rock dump
(Cerro Amarillo Waste Dump) in its current
location which, according to the then
official Chilean maps (1996), was located
within Chile. In 2007, Chile modified the
official maps in this area without making
the changes public. Los Pelambres stopped
using the relevant area of the Cerro Amarillo
Waste Dump in 2011.
The Cerro Amarillo Waste Dump is a pile

of inert waste-rock and any potential future
environmental impact could be easily
prevented with the implementation of an
environmental closure plan, which is the
accepted and recommended practice.
Los Pelambres has offered to implement
aclosure plan in line with the requirements
of the Provincial Authorities of San
Juan, but Xstrata Pachn has rejected
this proposal outright, even though this
solution would address all of the alleged
environmental concerns.
In February 2012, a binational border

commission, established to clarify the
exactposition of the Chile/Argentina border,
determined accurately the location of the
border in the area of the Cerro Amarillo
Waste Dump, which showed that part
oftheCerro Amarillo Waste Dump was
located in Argentina.
Los Pelambres will exercise all available

legal avenues to defend its position and will
continue to seek to reach an understanding
with the relevant authorities in Argentina to
allow the environmental closure of the Cerro
Amarillo Waste Dump.
In May 2014, Xstrata Pachn S.A. (Xstrata

Pachn), a subsidiary of Glencore and
the holder of the mining properties on the
Argentinian side of the border, filed a claim
against Los Pelambres before the Federal
Court of San Juan, Argentina, alleging that
Los Pelambres had unlawfully deposited
waste-rock on its property.
Power Purchase Agreements (PPAs)
Xstrata Pachn has also filed a criminal

complaint before a different Federal Court
of San Juan alleging that Los Pelambres
had violated several Argentinian laws
relating to the misappropriation of land,
unlawful appropriation of water bodies and
that peoples health was in jeopardy from
the alleged contamination that the Cerro
Amarillo Waste Dump might generate.
In both cases, Los Pelambres submitted
preliminary objections to the Argentinian
courts. These objections are still pending
in relation to the civil claim and each
party may appeal any decision on these
preliminary objections to higher courts.
In the criminal proceeding, the first instance
Court dismissed the preliminary objections
madeby Los Pelambres, but this decision
has been appealed.
dditional details of these claims are set out

A
The El Arrayn wind farm, in which the

Group has a 30% interest, supplies Los
Pelambres with an average of 21MW of
power under a 20-year PPA, which is around
20% of the mines total energy requirement.
During 2015, Los Pelambres started
receiving power under two other PPAs,
one from a solar power provider and
the other from a coal-fired station, that
together provide another 46% of the mines
power needs.
In the second half of 2016, Los Pelambres
will start to receive power from another solar
power provider, bringing the total amount
of power supplied from non-traditional
renewable sources to 33%.
These PPAs, plus a new short-term PPA
signed early in 2016, will reduce the
variability and cost of Los Pelambres
powerover the coming years.
or more information on these PPAs,
F
pleaseseepage 49.
Outlook
Production
The forecast production for 2016 is
expected to be 355365,000 tonnes of
payable copper, similar to the 363,200
tonnes produced in 2015, 89,000 tonnes
of molybdenum and 4555,000 ounces
of gold.
Cash costs
Cash costs before by-products credits
for2016 are forecast to be approximately
$1.55/lb and net cash costs are forecast at
approximately $1.25/lb. Lower throughput
is expected due to a higher proportion
of harder ore in the current phase and
this in turn puts pressure on unit mining
costs. Energy prices remain a key input
cost for Los Pelambres and partly depend
on precipitation levels in the region,
where much of the power is generated
by hydroelectricity. By the end of 2016,
Los Pelambres will be receiving almost
all of its power under long-term PPAs
with wind, solar and coal-fired power
generators, all of which are independent
ofprecipitation levels.
ore information on Los Pelambres sources
M
ofpower isset out in Energy opportunities
onpage 51.
INPUTS
EXPLORATION
EVALUATION
CONSTRUCTION
EXTRACTION
PROCESSING
MARKETING
RESTORATION
OUTPUTS
OVERVIEW
Centinela
70% owned
Centinela was formed during 2014 from the merger of the Esperanza
and ElTesoromines.Centinela is located in Chiles Antofagasta
Region, 1,350 km northofSantiago,inanimportant mining region
with sulphide and oxide deposits.
It produces copper concentrate (containing gold and silver) through

a milling and flotationprocessat Centinela Concentrates and copper
cathodes using a solvent extractionelectrowinning process (SX-EW)
at Centinela Cathodes.
GOVERNANCE
STRATEGIC REPORT

Evaluation
Construction
Production
2015 Production
2015 Financials
2016 Forecast
Copper cathode
Net cash costs
Operating
profit/(loss)
Copper
Gold
Tonnes (2014 172,800)
Tonnes (2014 93,800)
(2014 $1.63/lb)
(2014 $464.4m)
Tonnes
Ounces
Gold
Copper production
Net cash costs
Net cash costs
Ounces (2014 204,400)
000 tonnes
$/lb
$/lb
12
13
240,000 200,000
250,000 220,000
1.30
1.85
16E
(128.2)%
$(131.0)m
1.30
15
1.63
0.99
14
1.40
175-185 60-65
93.3
13
172.8
102.6
174.9
12
13.5%
$1.85/lb
145.2 75.9
105.1
(20.5)%
162,500
(19.1)%
75,900
163.2
(16.0)%
145,200
14
15
16E
Copper in concentrate
Copper cathodes
Antofagasta plc 43
OTHER INFORMATION
Copper in
concentrate
Exploration
Operational review
Mining division
2015 Performance
Operating profit
The operating loss at Centinela was
$131.0 million, compared with a profit of
$464.4 million in 2014, reflecting higher
net cash costs and lower realised copper
prices. The realised copper price fell by
24% from $3.02/lb in 2014 to $2.33/lb in
2015, as did the realised gold price, which
fell from $1,261/oz in 2014 to $1,159/oz in
2015. The mine generated $290.7 million
of operating cash flow during the year,
compared with $841.6 million in 2014.
Capital expenditure was $559.4 million,

including approximately $472 million in
respect of optimisation and development
projects. Total capital expenditure in
2016 is expected to be approximately
$430 million, including $247 million related
to the construction of the Encuentro Oxides
andthe molybdenum plant projects.
At Centinela in 2015, cash stripping costs
of $63 million were capitalised, and in 2016
a further $265 million of stripping costs are
expected to be capitalised.
ore information on these projects can be found
M
on pages 48 to 51.
Production
Copper production decreased by 17.1% to
221,100 tonnes compared with 2014, due
tolower production of copper in concentrate
and lower cathode production.
The Group expects to

complete the construction of
the Encuentro Oxides project
during 2017, which will provide
feed to the Centinela SX-EW
plant allowing it to operate
near its peak capacity of
100,000 tonnes per annum.
Copper in concentrate production was

145,200 tonnes, a 16.0% decrease compared
with 2014. Production decreased due to
grades falling at Centinela Concentrates,
as expected, from 0.65% to 0.58%, lower
recoveries and, to a lesser extent, lower
throughput. Gold production was 162,500
ounces compared with 204,400 ounces
in 2014, primarily due to lower grades
and throughput, compounded by slightly
lower recoveries.
Copper cathode production for the year
was 75,900 tonnes compared with
the 93,800 tonnes produced in 2014.
Compared with the same period last year,
cathode production was 19.1% lower as
grades declined as expected. Mining activity
moved to the lower grade zones of the
Tesoro Central and Tesoro Noreste (TNE)
pits before stopping at TNE in November.
Cash costs
Cash costs before by-product credits
increased by 7.1% to $2.27/lb compared
with $2.12/lb in 2014 as copper production
fell by 17.1%. This was offset by lower
input prices, a weaker Chilean peso and a
reduction in fixed costs. Net cash costs for
2015 were $1.85/lb compared with $1.63/
lb in 2014. This increase is due to the higher
cash costs before by-product credits as
well as lower gold production and realised
gold prices.
Outlook
Production
The forecast for 2016 is for production of
240250,000 tonnes of payable copper and
200220,000 ounces of gold. This forecast
includes 60,00065,000 tonnes of copper
cathodes and 175,000185,000 tonnes of
copper in concentrate. The Group expects to
complete the construction of the Encuentro
Oxides project during 2017, which will
provide feed to the Centinela SXEW plant
allowing it to operate near its peak capacity
of 100,000 tonnes per annum.
Cash costs
Cash costs before by-products for 2016
are forecast to be approximately $1.80/lb
compared with $2.27/lb in 2015. Net cash
costs are forecast at approximately $1.30/lb.
Net cash costs are sensitive to the gold
price, with each $100/oz movement in the
realised gold price having a $0.04/lb impact
on net cash costs in 2016.
In 2015, the Group commenced
construction of a separate molybdenum
plant that would produce approximately
3,500 tonnes per year of molybdenum
overthe remaining life of the mine.
Production is expected to commence
in 2017.
INPUTS
EXPLORATION
EVALUATION
CONSTRUCTION
EXTRACTION
PROCESSING
MARKETING
RESTORATION
OUTPUTS
OVERVIEW
Michilla
99% owned
Michilla was placed on care and maintenance at the end of 2015.

The mine produced copper cathodes from a leachable sulphide
and oxide deposit located in Chiles Antofagasta Region,
1,500km north of Santiago.
Operating profit

Construction Production
2015 Production
2015 Financials
Copper
production
Cash costs
Operating
profit/(loss)
Tonnes (2014 47,000)
000 tonnes
(2014 $2.38/lb)
(2014 $(29.0)m)
15
Cash costs
Cash costs decreased to $2.14/lb in

2015 compared with $2.38/lb in 2014.
This decrease is due to the reduced activity
at the mine.
$/lb
12
13
2.38
14
(153.1)%
$15.4m
Cash costs
14
2.14
13
3.22
38.3
12
3.18
37.7
47.0
(10.1)%
$2.14/lb
Total production was 29,400 tonnes of

copper cathodes, a decrease of 37.4% on
the 2014 production of 47,000 tonnes as
operations were wound down in the lead
up to the mine closure.
15
Antofagasta plc 45
OTHER INFORMATION
(37.4)%
29,400
29.4
Copper
Production
Exploration Evaluation
Michilla had an operating profit of

$15.4 million, compared to an operating
loss of $29.0 million in 2014, which was
itslast full year of production. The mine
was put on care and maintenance at the
end of 2015.
GOVERNANCE
2015 Performance
STRATEGIC REPORT
Operational review
Mining division
Antucoya
70% owned
Antucoya is an oxide deposit approximately 125 km northeast of the city of Antofagasta, in Chiles Antofagasta Region.
Construction of the project was completed in 2015 with full
production expected to occur by the end of the first half
of2016.Antucoya will produce 85,000 tonnes of copper
cathodes per year.
2
3
2015 Performance
Production
Total production in 2015 was 12,200 tonnes
of copper cathodes, as production started
in the third quarter of 2015. The mine is
currently ramping up to full capacity of
85,000 tonnes per year in the first half
of 2016.

Exploration
Evaluation
Construction
Cash costs
Cash costs at Antucoya will be reported in
unit costs once commercial production is
achieved, which is expected to be in the
first half of 2016.
Production
2016 Forecast
2015 Production
Copper
production
Copper
Cash costs
Tonnes
000 tonnes
Tonnes
$/lb
65,000
70,000
12.2
12,200
65-70
Copper
15
16E
1.65
Total capital expenditure on the project has

been $1.9 billion of which $143.4 million
was in 2015.
Outlook
Cathode production in 2016 is forecast to
be approximately 65,00070,000 tonnes.
The forecast cash costs for 2016 are
expected to be $1.65/lb.
The final $59 million of project capital
expenditure will be incurred in 2016.
INPUTS
EXPLORATION
EVALUATION
CONSTRUCTION
EXTRACTION
PROCESSING
MARKETING
RESTORATION
OUTPUTS
OVERVIEW
Zaldvar
50% owned Joint Venture
Zaldvar is an open-pit, heap-leach copper oxide mine operating

at an average elevation of 3,000 metres approximately
1,400km north of Santiago and 175km south-east of the
city of Antofagasta. The Group completed the acquisition
ofa50% interest in the mine from Barrick Gold Corporation
on1 December 2015 and is the operator of the mine.
Acquisition

Evaluation
Construction
Production
2015 Production1
Production
2016 Forecast
Copper
production
Copper
Cash costs
Tonnes (2014 100,698)
000 tonnes
Tonnes
$/lb
1.80
Cash costs
Cash costs at Zaldvar since completion in
2015 were $1.73/lb and capital expenditure
was $6.6 million.
4.4
50,000
55,000
Total attributable production in 2015 from

the completion date was 4,400 tonnes
ofcopper cathodes.
15
16E
Outlook
Attributable copper production in 2016
is forecast to be approximately 50,000
55,000 tonnes at a cash cost of $1.80/lb.
Capital expenditure2 in 2016 is expected
to be approximately $55 million, of which
$26 million will be spent on stripping.
1R
epresents attributable production since 1 December 2015.
2 Capital expenditures represent Antofagastas share.
Antofagasta plc 47
OTHER INFORMATION
4,400
50-55
Copper
Exploration
In December 2015, the Group completed

the acquisition of a 50% interest of the
Zaldvar mine from Barrick Gold Corporation.
Total consideration for the transaction
was $1,005 million, $980million upon
closing less working capital adjustments
and five annual payments of $5 million
each, starting in 2016. The final price will
be determined once the working capital
adjustments are finalised.
GOVERNANCE
2015 Performance
STRATEGIC REPORT
Operational review
Mining division
The Group seeks to expand its copper production in Chile and

abroad through the development of projects and other potential
opportunities. Brownfield development within the Groups
LosPelambres and Centinela mining districts in Chile remain
the primary focus for maximising value while managing risks
associated with execution.
The Group has a portfolio of longer-term

growth options and continues to assess
opportunities that come to market.
Longterm growth options associated within
the Groups portfolio are currently under
evaluation in pre-feasibility and feasibility
studies. Given the early-stage nature of
some of these projects, their potential
and timing is inherently uncertain and the
following outline is intended to provide
only a high-level indication of potential
opportunities. In the current uncertain
market conditions, growth is not a priority
but the Group seeks to keep its expansion
options open for when conditions improve.
The Groups exploration and evaluation
expenditure decreased by 39% to
$101.9 million in 2015 compared with
$167.5 million in 2014. As commodity
prices decline and there is greater
emphasis on cost control, there is a natural
decrease in exploration and evaluation
expense reflecting a tighter focus on
highpotential activities.
Projects under construction

Encuentro Oxides
The Encuentro Oxides deposit is within
the Centinela Mining District. It is expected
to produce an average of approximately
43,000 tonnes of copper cathode per
year over an eight-year period, utilising the
existing capacity at Centinelas SX-EW plant.
This will enable the plant to produce at full
capacity of 100,000 tonnes per annum
for a number of years once the project is
complete, helping to offset a decline in
production that would otherwise occur
due to falling mined grades at Centinelas
existing oxide pits.
2
The construction budget for the project

of$636 million was approved by the Board
atthe end of 2014.
The project entails the installation of new
crushing and heap-leach facilities at the
Encuentro Oxides deposit, a pipeline to
take the leach solution for processing at the
existing SX-EW plant some 17 km away, and
the extension of the sea water pipeline from
Centinela to Encuentro. Higher-grade ore
will be crushed and sent to the new heapleach facilities, while lower-grade ore will be
processed later on a Run-of-Mine (ROM)
leach pad.
This deposit is geologically important for
the Groups long-term development plan,
as Encuentro Oxides sits on top of the
much larger Encuentro Sulphide deposit.
The Encuentro Oxides project will act as
a funded pre-strip for the sulphide deposit
below, opening it up fordevelopment
as part of the Centinela Second
Concentrator project.
Pre-stripping started in August 2014 and
full-scale construction in early 2015. As of
the end of December 2015, the project had
achieved over 50% completion with first
production originally expected in late 2016,
but now delayed to the second half of 2017
to reduce expenditure during 2016.
As at the end of December, the project
was on time and on budget with 53% total
progress (including design, engineering,
procurement and construction) with first
production originally expected in late 2016,
but now delayed to the second half of 2017
to preserve cash flow without impacting the
return of the project.
2
3
Centinela
During 2015, work continued on optimising
Centinelas concentrator plant to bring the
level of throughput to the original design
capacity of 97,000 tonnes per day and
later to 105,000 tonnes per day. The first
stage, including the installation of two
tailings thickeners, crushing equipment
and flotation cells, was completed during
the year. The second stage, carried out
simultaneously, involves the installation
of a sixth tailings thickener at the plant
as well as the purchase of further mining
equipment. This will allow throughput to
increase to 105,000 tonnes per day while
producing thickened tailings with a solids
content of approximately 65%. As at the
end of December 2015, throughput could
be maintained at the increased rate, but not
while producing tailings with the required
moisture content. To do this will require the
completion of the final thickener, which is
expected in the first half of 2016.
2
Molybdenum Plant
This project will allow Centinela to produce
2,400 tonnes of molybdenum per year.
The project is being delayed to preserve
cash in 2016 and is now expected to
be completed in 2017, and will lower
Centinelas unit net cash costs.
2
INPUTS
EXPLORATION
EVALUATION
CONSTRUCTION
EXTRACTION
PROCESSING
MARKETING
RESTORATION
OUTPUTS
The Group recognises the importance

of capital cost control and optimising
production from existing operations, and
manages this by constantly monitoring the
efficiency of its mines, plants and transport
infrastructure. Where possible, it conducts
debottlenecking and incremental plant
expansions to increase throughput and
improve overall efficiencies. However, in
current market circumstances the Group
seeks to defer these projects, minimising
expenditure while keeping the project teams
active and focusing on completion ofkey
time-critical feasibility study work, such as
the preparation of EIAs.
In this phase, the Group will seek to increase

throughput to 205,000 tonnes per day
and to extend the mines life beyond the
currently approved 22 years. As part of the
development of this phase, a new EIA must
be submitted to increase the capacity of the
mines Mauro tailings storage facility and
itswaste dumps.
During the year, the Group revised the

approach to the incremental expansion
of Los Pelambres and decided to split
the project into two phases to ease the
development of the project and conserve
development capital in light of lower
commodity prices. This two-phase strategy
was approved by the Board during the year
and the feasibility study is now underway.
Capital expenditure for this project is

estimated at approximately $1.1 billion,
with some $600 million allocated to the
additional crushing and flotation circuits and
the balance for the desalination plant and
water pipeline. The Board will consider the
feasibility study for this project for approval
in late 2016 or in 2017, but a decision to
proceed will only be made once market
conditions are suitable and an approved
EIAis in place. Production would commence
in late 2019 at the earliest.
Greenfield growth projects

The Group continues to evaluate options for
the development of the Centinela Mining
District, a key area for longer-term growth.
2
The second concentrator will be built some

7 km from Centinelas current concentrator.
It is expected to have an ore throughput
capacity of approximately 90,000 tonnes per
day, with annual production of approximately
140,000 tonnes of copper, 150,000 ounces
of gold and 3,000 tonnes of molybdenum.
It is currently planned that ore will first be
sourced from the Esperanza Sur deposit
and, once mining at Encuentro Oxides is
completed, ore will also be sourced from
Encuentro Sulphides.
The pre-feasibility study for this $2.7 billion
project was completed at the end of 2015
and the preparation of the feasibility study
is now underway. The EIA was submitted
in 2015, with the outcome expected during
2016. The feasibility study is expected to
be completed by the middle of 2017 and
will include pilot testing of a hydraulic roll
crushing system which is being considered
in preference to conventional SAG and ball
mills. A decision to proceed with the project
will only be made if it is supported by the
market outlook at the time. If approval
is granted in 2017, production would
beexpected to begin in 2020.
Antofagasta plc 49
OTHER INFORMATION
This phase is to optimise throughput at

the operation within the limits set by the
existing operating, environmental and
water extraction permits, which will only
need relatively simple updates. During this
phase, Los Pelambres will operate at an
average throughput of 190,000 tonnes per
day with the addition of a new grinding
and flotation circuit, to mitigate the hard
ore currently being mined, together with
a 400l/s desalination plant and pipeline.
Desalinated water will be pumped to the
tailing storage facility at Mauro where
it will connect with the water recycling
circuit that returns water from the tailings
facility to the Los Pelambres processing
plant. The feasibility study is underway and
includes the preparation and submission of
an updated EIA for this phase, which should
be ready for submission in the firsthalf
of 2016.
Phase 1
GOVERNANCE
Los Pelambres
Incremental Expansion
Capital expenditure for this phase of the

project is estimated at approximately
$500 million, with the majority of the
expenditure being on mining equipment,
additional crushing and grinding capacity
and flotation cells. The conveyors from the
primary crusher to the concentrator plant
will have to be repowered to support the
additional throughput. The critical studies
(tailings and waste storage capacity),
is being conducted in parallel with the
feasibility study for Phase 1 and should be
completed by the end of 2017. However,
it will only proceed following a decision
on Phase 1 and will in addition require the
preparation and submission of various
permit applications, including an EIA.
At theearliest, first production from
this phase would be in 2022.
STRATEGIC REPORT
Phase 2
OVERVIEW
Brownfield growth projects
Operational review
Mining division
The project team continues to review

options for reducing the capital cost of
the project, including the use of existing
infrastructure (power lines, pipelines,
concentrate shipping and other facilities)
as well as using a larger owners team,
asopposed to an EPCM contractor, together
with other initiatives.
The Groups international

exploration strategy is to rapidly
and effectively identify, secure
and evaluate high-quality
copper exploration projects.
Following the completion of the second

concentrator, there is scope to increase
the plant capacity further and the Group
is considering the possibility and timing
of such an expansion. This could bring
throughput capacity to approximately
150,000 tonnes per day and would
increaseannual production to approximately
200,000 tonnes of copper, 170,000 ounces
of gold and 1,100 tonnes of molybdenum.
The Board has approved feasibility level
studies to commence on critical activities
and will review the project upon completion
of those studies.
The Group continues to evaluate other
opportunities in the Centinela Mining
District, the most significant of which is Polo
Sur. This deposit has a resource of 1.5 billion
tonnes at 0.34% copper together with gold
and molybdenum, and includes 125.5 million
tonnes of copper oxides at 0.40% copper
and some additional leachable supergene
sulphides. The deposit is approximately
35km from Centinela and the oxides
mayact as an additional source of feed
forits SX-EW plant in the future.
Los Pelambres
Given the size of the resource, which at
6.1 billion tonnes is more than three times
the quantity of processed ore expected
under the existing mine plan, there is
significant scope to increase the plant
capacity beyond the 205,000 tonnes per
day planned for Phase 2 of the incremental
expansion project. Such an expansion will
require extensive engineering works and
permitting as well as the support of local
communities and currently no significant
evaluation work is planned.
2
United States
Twin Metals Minnesota
Twin Metals Minnesota LLC (Twin Metals)

is a copper, nickel and platinum group
metals (PGM) underground-mining project
that holds the Maturi, Maturi Southwest,
Birch Lake and Spruce Road copper-nickelPGM deposits located innorth-eastern
Minnesota, USA.
The Group completed the acquisition of its
project partner in January 2015, bringing
Antofagastas ownership in the project
to 100%.
During 2015, the Group has been
undertaking evaluation and optimisation
exercises on the pre-feasibility study
that was completed in 2014 and has
alsoprogressed with geotechnical studies
and hydrological fieldwork required to
support future environmental reviews
and permitting.
3
Other exploration and

evaluation activities
The Group has an active early-stage

exploration programme beyond the
existing core locations of the Centinela
and Los Pelambres mining districts. This is
conducted through its in-house exploration
team and through partnerships with third
parties to build a portfolio of longer-term
opportunities across Chile and the rest
ofthe world.
Chile
The Group focuses its exploration activities
on the main copper porphyry belts in
northern and central Chile.
During the year, 45.6 million tonnes of
mineral inventory relating to the LlanoPaleocanal project was upgraded to mineral
resource, demonstrating the Groups
ability to continually expand and develop
its resource base. The 2015 programme
resulted in increasing mineral resources
at the Los Volcanes project and the Polo
Sur deposits by 831.3 million tonnes,
through exploration and in-fill drilling and
the completion of the geological and
resource models.
The Group has land holdings throughout
Chile and in some instances conducts
exploration under agreements with the
landowners or the state.
urther information regarding reserves and
F
resources is included on pages 186 to 193.
INPUTS
EXPLORATION
EVALUATION
CONSTRUCTION
EXTRACTION
MARKETING
RESTORATION
OUTPUTS
The Groups international exploration

strategy is to rapidly and effectively identify,
secure and evaluate high-quality copper
exploration projects in preferred jurisdictions
in the Americas, Australia-Oceania
and Africa.
Antofagasta has a 30% interest in Parque

Elico El Arrayn SpA, which operates the
largest wind farm in Chile, about 400km
north of Santiago. The plant supplies
40MW of power to Los Pelambres,
accounting for approximately 20% of its
total power requirement, under a 20-year
supply contract.
Energa Andina
The Group has a 50% interest in Energa
Andina S.A., a joint venture with Origin
Energy Limited of Australia, that has a
minority position in the Javiera solar project
in the Atacama Desert. This has been
supplying Los Pelambres with some 20MW
of power since June 2015.
or further information on Los Pelambres
F
energy supply, please see page 42.
Los Pelambres holds a 40% interest in the

531MW Alto Maipo run-of-river hydroelectric
project which is operated by the AES
Gener group and is in the upper section
of the Maipo river, approximately 50km
southeast of Santiago. Construction is
underway and is expected to be completed
in 2019. The Group is contributing its share
of the expected $2.1 billion capital cost
of which $1.2 billion is being funded by
project financing. The Group has signed two
20year PPAs that will secure the provision
of energy to Los Pelambres for up to
160MW. The first PPA started in 2015 with
power coming from a coal-fired station and
the second will start on completion of the
project in 2019.
Solar energy
Los Pelambres has long-term PPAs with
two solar power providers for a total of
50MW of power, approximately 25% of its
total energy requirement. The first of these
PPAs came on stream in 2015 (see Energa
Andina above) and the second should
come on stream in the second half of 2016.
These PPAs provide a secure renewable
energy supply to Los Pelambres for a
20year period at competitive prices.
Antofagasta plc 51
OTHER INFORMATION
urther information regarding the Chilean

F
energy market is included in the Key inputs
andcost base section on pages 19 to 21.
Alto Maipo
Energy assets
Over the last few years, the Group has
acquired a series of minority interests in
energy generators and projects as part of
its strategy to support the power supply
requirements of the mining operations.
The strategy has a particular focus on
renewable energy generation, supporting
the Groups broader aim of increasing the
sustainability of its operations. Over the last
five years, the Group has invested some
$577 million in power-generating assets,
with combined installed capacity of 880MW
(100% basis), of which, at the end of 2015,
350MW (100% basis), were in operation.
3
The Group holds a 40% interest in

Inversiones Hornitos S.A. (Inversiones
Hornitos) through its transport division.
Inversiones Hornitos operates a
165MW thermoelectric power plant in
Mejillones, in Chiles Antofagasta Region.
Inversiones Hornitos supplies Centinela
under long-term PPAs.
GOVERNANCE
The Groups strategy is to partner with

experienced junior exploration companies,
funding their exploration programmes
to earn an interest in the projects while
benefiting from their local knowledge
and expertise.
Inversiones Hornitos
STRATEGIC REPORT
El Arrayn
OVERVIEW
International
During 2015, the Group refined its portfolio

of early-stage exploration projects in
key copper provinces across the globe.
Working in partnership with selected
companies, both public and private, the
Group advanced projects in Argentina,
Australia, Canada, Chile, Mexico and
Zambia, while exiting from projects in
Australia, Canada, Finland and Portugal.
Antofagasta has a 30% interest

in Parque Elico El Arrayn
SpA, which operates the
largest wind farm in Chile.
PROCESSING
Operational review
Transport
Transported in 2015
The transport division provides rail and road cargo services

in northern Chile. The main business during 2015 was the
transport of copper cathodes, and increasingly concentrate and
sulphuric acid, to and from mines in the Antofagasta Region.
6.8m tonnes
The transport division typically provides
services to customers, who are mostly
major mining companies, under longterm contracts, often with agreed pricing
levels. These are subject to adjustments
for inflation and movements in fuel
prices. The division offers domestic and
international cargo transfer, shipment and
storage services.
The transport divisions total volumes
transported were lower in 2015, falling to
6.8 million tonnes, compared to 7.3 million
tonnes in 2014. Shipments for the year were
lower than had originally been expected
due to the Sierra Gorda mines slower than
planned ramp-up and the effects of the
heavy rains in northern Chile during the first
half of the year.
2015 Tonnage transported

Combined rail and road tonnage
000 tonnes (2014 7,302)
(6.8)%
6,805
2016 Financials
Operating profit $m (2014 51.0)
(17.7)%
$42.0m
Revenue at the transport division was

$152.4 million, a 5.3% decrease compared
to $160.9 million in 2014, reflecting lower
tonnage and a decrease in tariffs due to
lower oil prices and the weaker Chilean
peso(tariffs are set in pesos).
Operating profit fell to $42.0 million in 2015,
mainly reflecting the decrease in tonnage
and tariffs. Capital expenditure in 2015 was
$32.0 million compared to $21.2 million
in 2014.
During the year, the division adopted a new
operating model based on sustainability,
productivity and cost management.
As commodity prices declined during
the year, volumes being transported in
northern Chile fell. The division introduced
a new model to control costs and optimise
the efficiency of its assets, particularly its
rolling stock. During the year, the division
also provided new services on a spot basis
to theEl Abra and Spence mines for the
transport of sulphuric acid.
The division operates its own railway
network, with access to neighbouring
countries and to the two largest ports
in the Antofagasta Region, Mejillones
and Antofagasta. The Antofagasta port
is managed by ATI, in which the Group
holdsaminority non-controlling interest.
The transport division also owns Forestal

S.A., which manages the Groups forestry
assets. Forestals two properties, RelecoPuir and Huilo-Huilo, comprise some
25,000 hectares of native forest near the
Panguipulli and Neltume lakes, in Chiles
Region de Los Lagos. During 2015, Forestal
continued its regular forestation, fertilisation
and thinning programme.
Sustainability is an important part of the
ethos of the transport division, not only
in terms of ensuring the safe transport of
cargos and zero harm, but also from the
perspective of minimising the impact of
the divisions transport operations on the
communities in which it operates.
The transport division provides rigorous
safety and health training for all of its
employees and contractors. The division
has also established safety procedures and
measures to prevent accidents and ensure
public safety, such as installing traffic lights
and clear signage at railway crossings,
regular road maintenance and the regular
clearance of rubbish from beside the
railway lines.
Sustainability is one of the pillars of the
divisions new operating model. This focus
will not only benefit the environment and the
communities in which the division operates,
but will also enhance shareholder value
as stronger relationships are developed
with all stakeholders. During 2016, there
will be increased interaction with the
communities and increased transparency
in what the divisiondoes. This greater
level of engagement should lead to greater
understanding between all stakeholders and
provide benefits for all in the short, medium
andlong term.
Operational review
OVERVIEW
Sustainable development is an essential component of the

Groups decision-making process and business model.
To achieve this aim, the Group is committed to the continuous
assessment and improvement of safety, health, environmental
and social performance across all of its business operations.
STRATEGIC REPORT
This section of the Annual Report

summarises the Groups sustainability
performance in 2015. The 2015
Sustainability Report is published separately
and is available at www.antofagasta.co.uk.
implementing its new community

engagement approach, strengthening
itssocial licence to operate on the basis of
regular dialogue and agreed contributions
to the communities in which the
Group operates;
auditing and assessing business

operations to ensure safe work practices
and strengthening leadership and
operating procedures in higher risk areas;
Los Pelambres and Centinela Cathodes

are certified under the international
standards ISO 14001, ISO 9001 and
OHSAS 18001. Until its closure, Michilla
was certified under ISO 9001 and
OHSAS 18001 and had a management
system in line with ISO 14001.
identifying opportunities to improve the

efficient use of water, energy and other
natural resources; and
developing the first Group-wide response
to climate change.
While there were significant highlights in
2015, regrettably the Group suffered the
loss of a contractor at the Michilla mine.
In addition, there were protests bythe
Salamanca community, close to Los
Pelambres, concerning water shortages
inthe region.
Antofagasta plc 53
OTHER INFORMATION
developing human capital finding,

developing and maintaining a high-quality
and committed workforce to achieve the
Groups business strategy;
The 2015 Sustainability Report is the

Companys ninth and has been prepared
in accordance with the Global Reporting
Initiative (GRI) G4 reporting standards
and verified by PricewaterhouseCoopers.
The Report also covers the mining
divisions compliance with the ICMMs
tensustainable development principles.
Reporting on progress
The Groups sustainability priorities are

those issues of material risk to the business,
its employees and contractors, to the
environment in which it operates and
to the Groups national and international
stakeholders. In 2015, the Group built upon
the materiality assessment carried out in
2014 addressing high risk and high impact
areas. Specifically, the Group focused on
the following:
GOVERNANCE
The Group respects the

rights of its employees and
contractors, as well as those
of everyone that comes into
contact with the business.
Sustainability focus
Operational review
Environmental and social governance

Why it matters
Antofagasta is committed to high levels of corporate environmental
and social governance, starting with leadership from the Board of
Directors. The Board is responsible for ensuring that sustainability
is embedded in all decisions throughout the mining cycle.
The Board is supported by five committees

including the Sustainability and Stakeholder
Management Committee whose role is to
oversee implementation of the Companys
safety, environmental and social policies and
standards. This Committee met six times
in 2015.
Respecting Human Rights
At the operational level, the transport

division and each mining company has
itsown sustainability manager responsible
for environmental, community, public affairs
and communication issues.
Employees and contractors

High safety and health standards
urther information regarding the Sustainability

F
and Stakeholder Management Committee is
included on pages 93 and 94.
Upholding Ethical Standards andValues

The Groups Code of Ethics and
Crime Prevention Handbook set out
the responsibilities of employees
and contractors in relation to human
rights, corruption and bribery, codes of
conduct, complaints management and
whistleblowing. The Code reflects the
Groups core values of:
Respect
The Group respects the rights of its

employees and contractors, as well as those
of everyone that comes into contact with
the business. This is reflected in the Groups
commitments to employees, contractors
and local communities:
Fair wages and good labour relations

Prevention of discrimination, harassment
and bullying
Opportunities for training and development
Provision of good-quality accommodation,
services and facilities at the operations
Communities
Prevention of corruption and malpractices
Prevention or mitigation of environmental
and social impacts
Respect for communities rights, culture
and heritage
Sustainability
Engagement in dialogue through the

mining cycle from exploration to closure
Excellence
Listening and responding to grievances
Safety and health
Support for community development
Innovation
The Group is sensitive to the different

cultures, ethnicity and diversity of the
places in which we operate. None of the
Groups current operations or projects
involve indigenous people, however,
Antofagasta has had some very earlystage, short-term exploration activities
which have required engagement with
indigenous communities. The Group has
been successful in maintaining a respectful
and mutually beneficial relationship in
accordance with ILO Convention 169
andICMM recommendations.
Forward-thinking
Employees and contractors are trained
in the Code and are encouraged to
report any unethical conduct through
established channels.
ICMM and FTSE4Good
Antofagasta Minerals was accepted as

a member of the International Council
on Mining and Metals (ICMM) in May
2014. The ICMM was founded in 2001
to improve sustainable development
in the mining and minerals industries.
Member companies are required
to improve their sustainability
performance based on ten guiding
principles and to report on their
progress annually using the GRI
G4 standard. In 2015, Antofagasta
Minerals worked towards closing the
gaps identified during its application
to ICMM.
In June 2015, the Company was
added as a constituent of the
FTSE4Good Index. This index
is made up of companies with
strong Environmental, Social and
Governance (ESG) practices as
measured against 300 indicators,
14themes and three pillars as
assessed by FTSE International.
OVERVIEW
Environmental protection
Optimising water resources
Environmental protection is highly regulated

in Chile. Mining projects must undergo a
stringent environmental impact assessment,
including social and heritage aspects. If the
project is approved by the National Agency
for Environmental Assessment, its impact
prevention, mitigation and compensation
measures are included in the Environmental
Approval Resolution (RCA). They become
legally-binding and are subject to review by
the Environmental Agency. Non-compliance
with RCA commitments can result in fines
and eventual revocation of the operational
permit. In 2015, the Group submitted the
EIA for the construction of the Centinela
Second Concentrator project.
Water is a scarce and valuable commodity

in the centre and north of Chile, particularly
in the Choapa Valley near Los Pelambres,
which is a key area for agricultural
production. Water availability is increasingly
affected by changes in the climate and
the prolonged drought in central Chile
isanongoing concern.
Key Water Indicators

Total water consumption
% water supply from sea water
GOVERNANCE
Compliance
STRATEGIC REPORT
Why it matters
Mining operations can have significant environmental impacts
and concern for long-term environmental integrity, including
climate changeimpacts, is high and of increasing public interest.
Mining involves the alteration of habitats, the use of water and energy
resources, the generation of noise and air emissions and of large
quantities of waste-rock, spent ore and tailings. Legal permits, the
social licence to operate and good community relations all depend
onsound environmental stewardship.
Zero water discharged

% water recirculated
The Groups priority is to ensure that it

has sufficient water to operate without
compromising the quality or availability
ofwater for the local community.
Antofagasta is always looking at ways
to minimise the use of continental water
resources through increased efficiency and
the use of sea water as it does in its Michilla,
Centinela and Antucoya operations.
OTHER INFORMATION
The Group has achieved high water reuse

rates of up to 72% at each operation.
The remainder of the water either
evaporates or remains in the tailings dam
with no discharge to the environment.
In 2015, the mining division consumed
45.2 million m3 of water and sea water
accounted for 45.6% of it, up from
44.6 million m3 and 44% in 2014.
All of the Groups mining operations have
water management plans and water
quality monitoring results are submitted
to the Water Bureau and Health Service.
Since 2012, the Choapa community has
also been actively involved in water quality
monitoring. In addition, Los Pelambres
provides direct financial support to local
farmers in the Choapa valley for water
efficiency projects such as large-scale
drip irrigation schemes and the lining
ofirrigation canals.
Antofagasta plc 55
Operational review
Managing waste
Large-scale mining operations generate
waste rock, spent ore and tailings the
material left over after the process of
separating the valuable portion of the ore
from the uneconomic portion. Michilla,
Antucoya and Centinela Cathodes, which
use leaching to produce copper, have fully
permitted spent ore dumps. Los Pelambres
and Centinela Concentrates, which use
flotation, deposit their waste in licensed
tailings storage facilities.
Centinela is the first mine in the world to
use thickened tailings technology on this
scale. It provides many advantages including
greater water efficiency and stability and
better dust control.
Other solid (non-mining) wastes are
segregated and stored prior to final disposal
in compliance with Chilean regulations.
The Group has pioneered the use of
thickened tailings deposits, which have
alower environmental impact.
Sustainable energy
In 2015, energy accounted for approximately
15% of the total operating costs of the
mining division. Total energy demand is
rising as production grows, transportation
distances increase and ore grades
decline as the Groups operations get
older. There isalso greater use of sea
water, whichneeds to be pumped to
themine sites.
To date, the Group has secured renewable

energy from two principal sources:
El Arrayn is the largest wind farm in Chile
with an installed capacity of 115MW and
is operated by Pattern Energy. El Arrayn
provided approximately 20% of Los
Pelambres energy in 2015 and operates
under a long-term PPA; and
Javiera solar (photovoltaic) farm in
the Atacama Desert is operated by
SunEdison. The farm has an installed
capacity of 69.5MW covering a site of
180 hectares and supplies Los Pelambres
with approximately 10% of its total
energy requirement.
By the end of 2015, the Groups biggest
operation, Los Pelambres, was being
supplied with 33% of its energy from
renewable sources and this is expected
toreach 80% by 2019.
With a core focus on resource efficiency,
the Group seeks to further reduce energy
consumption per unit of production and
increase the percentage of total energy
generated from renewable sources.
Investment in new and clean energy

sources has major commercial as well
asenvironmental benefits.
El Mauro
tailings dam
Los Pelambres has two tailings
dams. Since 2008, its tailings have
been deposited in the Mauro Dam,
located in the Pupio Valley 13 km from
Caimanes, the nearest community.
With a capacity of 1.7 billion tonnes,
itwas designed to withstand extreme
weather conditions and severe
earthquakes. This was tested in
September 2015, when a major
earthquake of magnitude 8.3 on the
Richter scale struck off the coast of
Chile, some 100 km from El Mauro.
The dam continued to operate as
normal and there was no structural
damage to the infrastructure.
Immediately after the earthquake,
LosPelambres invited representatives
from the local community to verify
thestructural integrity of the dam.
HSE Indicators:
Total energy demand MW

% energy supply from
renewable sources
Mitigating climate change
In 2016, Antofagasta will start executing specific projects to increase energy

efficiency in its operations which allow it to set goals for GHG reduction.
The Groups approach is to limit

contributions to climate change by
controlling GHG emissions through
improved energy efficiency and to source
an increasing proportion of its energy needs
from clean energy sources. The Group
has reported its Scope 1 and 2 direct and
indirect GHG emissions, as defined in the
GHG Protocol, to the CDP since 2009.
In 2015, it developed its first integrated
climate change strategy, which was based
on ICMMs policy recommendations.
GOVERNANCE
The new standard guides the implementation of initiatives to mitigate CO2

emissions at current operations and future projects. To achieve this, the Group
has identified the critical activities and designed projects to reduce emissions
that are both technically and economically feasible according to the marginal
abatement cost curve. This methodology allows for the comparison of the
benefits of each project, measured in termsof potential reduction against cost
savings per tonne of copper abated, which is particularly relevant in the current
cost control environment.
STRATEGIC REPORT
Antofagastas new climate change standard establishes a strategy to mitigate its

carbon emissions, despite the Groups increasing use of sea water. With 75%
of its emissions associated with electricity consumption, the first priority was
to diversify its energy sourcing and by the end of 2015, Los Pelambres was
receiving 33% of its energy from clean sources. By 2019, this will increase
to 80%.
Changes to the climate have a direct impact

on the Groups operations in relation to the
availability of water, droughts and other
extreme weather events. Chile is a country
which is vulnerable to the effects of climate
change, reflected in higher temperatures
and reduced rainfall in the north and centre
of the country. The Chilean government has
recently committed to a 30% reduction in
GHG emissions below 2007 levels by 2030,
despite a global contribution of only 0.2%.
OVERVIEW
Climate change Decouplinggrowth from CO2emissions
The main features of the standard are:
encouraging innovation to improve energy

efficiency and the use of clean energy;
mitigating GHG emissions; and
measuring progress and reporting
results,including CO2 emissions, in
accordance with the Carbon Disclosure
Project (CDP).
CO2 emissions by location 2015 (tonnes of CO2 equivalent)

Scope 1
Direct emissions
Mining division
Los Pelambres
Centinela Cathodes
Michilla
Corporate Offices
Total for mining division
Transport division
Total Antofagasta
Scope 2
Indirect emissions
Total
emissions1
CO2 emissions
intensity2
2015
2014
2015
2014
2015
2014
168,892
233,384
152,372
23,351
120
578,118
76,028
654,146
173,943
225,013
145,533
49,218
208
593,915
96,321
693,180
425,064
734,493
173,664
78,497
1,042
1,412,760
2,228
1,414,988
454,885
713,253
212,098
124,991
770
1,505,997
2,043
1,533,904
967,876
967,876
326,036
101,848
1,161
1,990,878
78,256
2,069,134
628,828
938,266
357,631
174,209
978
2,099,912
98,364
2,227,084
2015
1.64
6.67
4.29
3.47
3.24
10.923
609.544
2014
1.61
5.43
3.81
3.71
2.98
13.473
420.974
1 Scope 1 + Scope 2.
2 Total CO2 emissions per tonne of fine copper produced (scopes 1 and 2).
3 Tonnes CO2 e/kiloton transported.
4 Antofagastas Intensity figure against revenue.
Antofagasta plc 57
OTHER INFORMATION
Growth in production will inevitably result

in increased GHG emissions. However, the
Company will seek to balance this through
greater energy efficiency and increased
energy supply from non-fossil fuel sources.
identifying the risks and opportunities

of climate change impacts on the
Groups operations;
Operational review
Protecting biodiversity
The Groups targets are zero net loss of
biodiversity and to add value to biodiversity
wherever possible through direct support
forconservation projects and effective
private-public partnerships.
The greatest biodiversity challenges for the
Group are at Los Pelambres which is located
in an agricultural valley.
The Company has voluntarily restored the
Laguna Conchali coastal wetlands, near its
port facilities, to create a nature sanctuary
that has been classified as a Wetland of
International Importance under the Ramsar
Convention. The Group has also put in
place a programme to protect one of the
few remaining Chilean palm forests at
Monte Aranda and since 2014 has also
been protecting Santa Ins, one of the
rarerelicforests in the region.
Los Pelambres and Centinela monitor
their impact on the marine ecosystems
at their port facilities in Los Vilos and
Caleta Michilla to prevent impacts on
themarine environment.
In 2015, the Group worked with the
Wildlife Conservation Society to develop
a biodiversity standard, aligned with
ICMMs principles, to achieve no net loss
ofbiodiversity across the business through
the application of the mitigation hierarchy.
Cultural heritage
The Group participates in various initiatives
to protect and increase public knowledge
about local heritage. In 2014, Los Pelambres
opened an exhibition hall at Monte Aranda
in the Choapa Province focusing on rural
life and local customs. Some residents
of Caimanes now work there as hosts.
In 2016, the Group will open a 25-hectare
rock art park, also at Monte Aranda, which
will exhibit over 240petroglyphs recovered
fromthe areawhere the Mauro Dam
was built.
In the Antofagasta Region, the Group
is involved in conservation and the
enhancement of cultural heritage,
supporting local organisations such as
the ProLoa and Fundacin Chacabuco,
which are dedicated to the preservation of
regional heritage. It has sponsored a number
ofbooks on the archaeological heritage
oftheAntofagasta and Choapa regions.
Managing mine closure
Chilean legislation requires that mining
operations have comprehensive closure
plans approved by the national geology
and mining agency SERNAGEOMIN,
which defines measures to control risks
and demonstrate appropriate funding to
implement the closure plans. These plans

must be updated every five years and were
last updated at Michilla, Los Pelambres and
Centinela in 2014.
In November 2014, the Group announced
the closure of the Michilla mine, which
was acquired by the Company in 1980.
The announcement was made 14 months
in advance of closure and a comprehensive
social closure plan was implemented,
which included trying to transfer as many
employees as possible from Michilla to
other Group operations. For the remainder,
generous severance terms, beyond those
required by law, were agreed with the mines
unions. This approach helped to minimise
uncertainty and provided enough time for
employees to plan ahead.
During the year, the Group began
developing corporate closure standards that
move beyond those required under Chilean
law, and following ICMM best practice that
provides guidance for environmental and
social issues.
Air quality control
In addition to naturally occurring dust,
miningoperations generate particulate
emissions from loading and hauling activities.
Dust can affect health, particularly through
the smaller, ingestible component and is of
particular concern at Los Pelambres where
the communities are closer to the mine than
at some of the Groups other operations.
At Centinela, dust is also an issue as there are
several other active mining operations around
the town of Sierra Gorda.
Dust levels are monitored across all sites
and at nearby communities to ensure
compliance with Chilean government
standards. The Group uses a preventative
approach to manage air quality and limits
dust emissions through operational controls
like road wetting and covering of conveyors
and stockpiles including crushed materials.
Key innovations to limit dust include:
introduction of a preventive warning
system at Los Pelambres and Centinela
based on mining operations and weather
conditions in conditions of strong
winds,certain operational activities
suchas blasting may be rescheduled;
introduction of a system of mist cannons
at Los Pelambres; and
working in conjunction with other mine
operators, the local authorities and the
regional environment agency to diagnose
and plan a solution to control the dust
inSierra Gorda.
Antofagasta has no significant gaseous
emissions other than GHGs, which are
addressed under climate change.
Social closure
ofthe Michilla mine
Michilla is located in a remote coastal
area of the Atacama Desert, close to
Caleta Michilla, which has some 800
inhabitants. Following the completion
of mining activities in 2015, the mine
and processing plant were put on
care and maintenance. The water
extraction facilities at Caleta Michilla
will continue to be used by Antucoya
and Centinela.
Antofagasta created a dedicated
committee to co-ordinate the
actions associated with the closure,
comprising representatives from the
Human Resources, Environment,
Safety, Risk and Public Affairs
departments. The committee focused
on the timely announcement of the
closure (14 months in advance),
arecruitment and re-employment
plan for employees (around 25%
of employees have been placed in
positions in other parts of the mining
division), and the management
of the long-term and legacy
environmental impacts.
HSE Indicators:
CO2 direct and indirect emissions

CO2 intensity per tonne of
copper produced
OVERVIEW
Community relations
Conflict management
Upset because of a long drought, in
February 2015 some neighbours from
Salamanca blocked the road leading to Los
Pelambres demanding that the Company
build a desalination plant and stop using
water from the Choapa river. However,
using the new engagement model, the
crisis was managed by bringing together
local government, members of congress
and water consumer organisations, as well
as the protesters and representatives from
Los Pelambres. An agreement was reached
after about ten days of negotiation that
included undertakings by both public and
private parties to address the core issue
of finding short and long-term solutions
towater shortages in the area.
ore information in the 2015
M
Sustainability Report.
Supporting regional development

The Groups mining division has designed
and implemented a social investment
programme which aims to bring sustainable
business and development opportunities
to the communities in which the
Group operates.
Over the years these have included the:
development of sustainable agriculture
schemes, including investment in a
largescale drip irrigation project and
technical support to small farmers;
support to artisanal fishermen at Los Vilos;
investment in infrastructure projects to
improve public areas in local communities
such as in the town squares, sport
facilities and schools;
support for a number of education
programmes and award of scholarships
to top candidates at local schools
toallow them to attend university
orreceivetechnical training;
provision of vocational
training opportunities;
Antofagasta plc 59
OTHER INFORMATION
In 2013, Los Pelambres developed a new

model for community relations called
Somos Choapa (We Are Choapa) which
represented a major increase in the dialogue
and involvement of the community with
the Company. The Groups operations in
the Antofagasta Region also participate
in local development alliances such as
CREO Antofagasta.
In September, Los Pelambres began a

consultation process with the Caimanes
community to discuss their concerns
regarding the Mauro Dam, including the
flow of a local stream and other topics of
common interest. The community and the
Company discussed the implementation
of initiatives to improve the communitys
access to water, introduce additional
safety measures at the dam, improve the
emergency communications plan and to
set-up a development fund for the benefit
of the community and local residents.
Considerable progress has been made
and agreement on a lasting solution to this
longstanding issue is expected in 2016.
Los Pelambres began a

consultation process with
the Caimanes community to
discuss the implementation
of initiatives concerning the
Mauro dam. Considerable
progress has been made.
Each mining operation has a sustainability

manager with overall responsibility
for community relations including the
implementation of the social investment
and stakeholder engagement programmes.
Engagement is through both formal and
informal channels including holding regular
open meetings, joint community-company
task groups (for monitoring and discussing
specific local development issues), use of
social media and regular visits for members
of the community to the mine sites.
GOVERNANCE
Approach to community engagement
STRATEGIC REPORT
Why it matters
Managing the operations sustainably requires preventing and
mitigating their impact throughout the mining cycle from exploration
to closure, fulfilling their commitments and becoming a more visible
and effective contributor to local development. Over the last couple of
years, Antofagasta has been innovative in its community engagement
approach to strengthen its social licence by becoming more active
in regional long-term development, based on a long-term vision
developed together with local stakeholders and close collaboration
with the municipalities and the government.
Operational review
investment in healthcare facilities

including completion of the first Primary
Health Care facility at Alto Choapa
(investment of $2.0 million);
Somos Choapa (We Are Choapa)

Our new approach to community engagement
provision of clean drinking water through

co-financing ($3 million) water towers
and wastewater facilities for the towns
ofSierra Gorda and Baquedano;
provision of running drinking water for
Caleta Michilla through co-financing a
desalination plant run by the Mejillones
municipality; and
contribution of funds to a coastal bicycle
path as part of the CREO Antofagasta
master plan.
Responding to community complaints
Unethical behaviour can be reported
through the Companys website, via the
internet or on the telephone. All complaints
will be investigated and can be made
anonymously if the complainant prefers.
The Ethics Committee is responsible for
investigating these complaints in a timely
manner and their work is supervised by
theAudit and Risk Committee of the Board.
The Group also has a grievance system
atall of its operations for members
of local communities to express their
concerns to the Company. This system
allows forconsultation and feedback,
with grievances from local communities
generally handled by the operations
community engagement team.
By providing these different means for
complaints to be made about the Company
and for them to be handled efficiently, the
Board intends that any contentious issues
can be raised early and resolved before
they develop into potentially serious areas
of contention.
The Groups new engagement model aims to strengthen its social licence to
operate and grow. It is based on a methodology to sustain ongoing dialogue
between the Company, local communities, authorities and other local
stakeholders to enhance the Groups contribution to local development and
socialcapital. The models key characteristics are:
1. Engaging with the communities, the local authority and other local
stakeholders to:
identify local challenges and opportunities
(whether related to mining or not);
build a shared vision for the regions development; and
design a portfolio of projects and programmes to fulfil this vision.
2. Taking an integrated and long-term approach to the challenges faced by
theChoapa provinces four municipalities, through the design and execution
ofa portfolio of projects instead of isolated contributions.
3. Working through alliances with national, regional and local government,
usingboth private and public funding to implement the agreed projects.
4. Explicit commitment to transparency and accountability of decisions,
management and results. Chile Transparente the Chilean arm of
Transparency International has accepted the Groups invitation to oversee
Somos Choapa.
Somos Choapa has been accepted with growing enthusiasm by local
stakeholders. By the end of 2015, some 49 discussion forums had been held
inthe province with the participation of 3,600 neighbours. From this process
18strategies emerged, involving 57 specific initiatives. A dozen were already
intheir tendering stage by the end of the year.
Somos Choapa constitutes an integrated platform for the sustainable
development of the Choapa province and a common charter for both
publicandprivate investment in the short, medium and long term.
OVERVIEW
Employees
Why it matters
Retaining, developing and engaging employees
iskey to operating a successful business.
STRATEGIC REPORT
More information on Key inputs and cost base

on pages 19 to 21.
developing a Group organisational

model through the capture of best
practices, promoting synergy and
supporting competitiveness;
Talent Management including

development programmes and
tools,performance management and
succession planning for key positions; and
enhance employees engagement
tothe organisation.
Labour relations
Antofagasta is one of the largest mining
operators in Chile. In 2015, the Group had a
total workforce of approximately 19,200 of
which some 27% were employees and the
balance were contractors. The workforce
declined compared with 26,151 in 2014
due to the completion of the construction
of Antucoya and the departure of the
contractors working there.
Group employees receive a fair salary,

commensurate with industry benchmarks.
Training opportunities are available for
all employees and job opportunities are
advertised internally to promote internal
mobility. The Group strives to offer a
safe work environment, good quality
accommodation, medical and other support.
The maximum number of working hours is
prescribed under Chilean law, which also
forbids child and forced labour.
In 2015, women represented 10% of the
mining divisions workforce and 8% of
them are supervisors or above. There is one
woman on the Executive Committee and
one on the Board.
Contractors and suppliers
Contractors form some 72% of the mining
divisions workforce and therefore the
management of contractors and maintaining
their high standards of performance is key
tothe Groups successand reputation.
Antofagasta plc 61
OTHER INFORMATION
strengthening Group culture through

promoting shared values, principles
and ethics while enhancing the
leadership model;
The aim of Antofagastas Human Resources

strategy is to develop and ensure it has
the organisational capabilities to sustain its
business strategy over the short, medium
and long term. The strategic objectives are:
The Group ensures its own and its

contractors compliance with all Chilean
laws and regulations, and with the Groups
values and Code of Ethics, including the
fundamental respect for human rights.
Labour agreements which cover salaries,
working hours, compensation and
employment benefits, are negotiated with
the unions at all of the Groups operations.
These agreements were last negotiated in
the mining division in 2013 and 2014 and
cover a period of up to four years. There are
ten unions in total, three at Los Pelambres,
three at Centinela, twoat Zaldvar and one
at each of Michilla and Antucoya. The Group
recognises employees rights to union
membership and collective bargaining,
and promotes equal opportunities in
the workforce.
GOVERNANCE
The Groups Executive

Committee, led by the CEO,
made seven visits to the
operations in 2015, to verify
the critical controls for
the keyrisks were being
implemented effectively.
Supporting the business

In 2013, the Group designed a corporate
human resources strategy for all its
companies. New programmes and tools
were introduced in 2014 and consolidated
in 2015, in line with the corporate Costs
andCompetitiveness Programme.
Operational review
The Group audits its main contractors

on a regular basis to ensure compliance
with Chilean labour legislation and the
Groups labour and safety standards
including monthly audits to ensure that all
wages and associated social contributions
are paid by the contractors employers,
before the next invoice is paid. In addition,
contractors employers are required to pay
their employees a minimum salary that is
approximately 70% above the lowest legal
wage in Chile.
Contractors receive training on the Groups
safety and other standards and are required
to uphold the same high level of safety
practices as the Groups own employees.
Additionally, a new Group-wide procedure
has been implemented on particular safety
prevention techniques and actions to be
executed by each relevant contractor under
the supervision of the contractors employer.
Safety: risk-based
preventative approach
In 2013, the Group adopted a new safety
model in line with international best
practices and ICMM recommendations.
The pillars of this model are:
identifying and understanding key fatality
or serious injury risks;
implementing critical controls;
reporting and investigating near misses; and
increasing on the ground senior leadership.
Analysis of the key risk areas identified
that, between 2006 and 2015, 11 types of
risk were responsible for all of the fatalities
and 95% of the high-potential near misses.
The Group concentrated on these risk
areas increasing leadership and awareness,
assigning responsibility for risks and auditing
safety procedures.
In 2016, the focus will be to monitor and

audit the safety performance and to extend
all procedures to contractors to strengthen
theperformance of contractor companies.
The Groups Executive Committee, led
by the CEO, made seven visits to the
operations in 2015, to verify the critical
controls for the key risks were being
implemented effectively.
Among other initiatives, on-site supervision
of key safety risks, near-miss reporting,
distribution of newsletters about the
causes of severe accidents, extended
site management meetings that focus on
safety, and public recognition for employees
that demonstrate the best safety conduct
help raise safety awareness. The Group
also trains and supervises employees and
oversees safety standards and practices
forall contractors.
During 2015, 3,904 people were trained
in key aspects of the safety and health
model such as incident reporting,
investigation of high-potential near-misses
and Antofagastas new safety and health
guidance for contractors.
All employees complete a safety and health
induction course before starting work.
There are regular refresher workshops on
safety policies and procedures, to discuss
lessons learned from near-miss incidents
and share examples of best practice.
Safety performance is reported weekly
to the Executive Committee and monthly
to the Board. Fatal and serious accidents
are reviewed in detail by the Boards
Sustainability and Stakeholder Management
Committee. Operational safety reviews are
conducted by the Executive Committee
across all operations.
Talent management
and development
Training for employees enables
the Group to keep improving the
skills of the workforce in line with
the current and future needs of
the business. Providing personal
development opportunities helps
to motivate employees and keep
them with the Company for the
longterm. The Company has a talent
management programme to develop
personnel within the Company,
and a succession plan forkey
positions. Since 2010, the Group
has a specific initiative to recruit
young professionals.
HSE Indicators:
Total number of employees in 2015
5,300
Total number of contractors
13,900
Chilean mining
industry1
Mining Division
Transport Division
Group
All Injury Frequency Rate (AIFR)
Number of fatalities
2011
2012
2013
2014
2015
2011
2012
2013
2014
2015
2011
2012
2013
2014
2015
3.1
2.1
9.6
3.0
2.9
1.3
13.0
2.5
2.6
1.1
10.3
1.9
2.5
1.1
10.3
1.7
2.0
1.1
10.9
2.0
N/A
9.1
28.3
11.4
N/A
5.4
28.6
7.8
N/A
3.9
17.7
5.1
N/A
5.0
22.2
6.1
N/A
6.9
17.8
7.8
26
1
1
25
1
25
2
27
5
16
1
AIFR: Number of accidents with and without lost time

during the period per million hours worked.
STRATEGIC REPORT
LTIFR: Number of accidents with lost time during the

period per million hours worked.
1S
ource: National Mining and Geology Service (Servicio Nacional de Geologa y Minera, Sernageomin).
N/A: Not available.
The Group analysed the cause of health

risks across the business and identified the
six main risks as: exposure to airborne dust
and particulates (including silica); exposure
to acid mist; ionising radiation; solar
radiation; exposure to elevated noise; and
working at height. To prevent each of these
risks, new critical controls were introduced
in 2015 and these will be verified in the
fieldduring 2016 so as to reduce the risks
toallmembers of the workforce.
A complete medical check-up to establish
fitness to work is mandatory for new
employees. Every year all employees
have access to a preventive age-adapted
medical check-up paid for by the Company
and done in the best available clinics and
inCompany time.
Antofagasta plc 63
OTHER INFORMATION
Health service provision at each operation

includes a fully operational medical
centre providing full first aid emergency
arrangements and paramedic support.
Health
While over the years the Group has

steadilyreduced the severity and frequency
of accidents, fatalities have not been
eliminated. In 2015, one contractor died
at the Michilla operation. Fatalities are not
acceptable and this incident has further
heightened the Groups awareness of its
safety responsibilities. Important lessons
have been learned and new measures
are being implemented to strengthen the
operational control of our contractors and
toaccelerate their adoption of the new
safety and health model.
GOVERNANCE
The Groups objective is to

achieve zero fatalities for
employees and contractors
ineach and every year.
Safety performance
The Groups objective is to achieve zero

fatalities for employees and contractors
in each and every year. All contractors are
required to comply with the new safety
and health procedures and, going forwards,
this will be further strengthened through
technical support audits and monitoring.
Compliance with the safety and health
model is audited twice a year at each of the
Groups operations and exploration projects.
The results of these audits are reported to
the Group CEO and the GeneralManager
ofeach mining operation.
OVERVIEW
Lost Time Injury Frequency Rate (LTIFR)
Financial review
For the year ended 31 December 2015
Results
Revenue
EBITDA
Depreciation, amortisation and disposals
Net finance expense
Profit before tax
Income tax expense
Discontinued operations
Profit for the year from continuing and discontinued operations
Earnings per share from continuing operations
Earnings per share from continuing and discontinued operations (US cents)
Net debt
Year ended
31.12.2015
$m
Year ended
31.12.2014
$m
Movement
$m
Movement
%
3,394.6
890.7
(586.3)
(39.2)
259.4
(160.4)
602.7
701.7
0.6
61.7
(1,023.5)
5,145.6
2,141.4
(557.8)
(63.9)
1,515.6
(702.3)
37.4
850.7
42.8
46.6
(1.6)
(1,751.0)
(1,250.7)
(28.5)
24.7
(1,256.6)
(541.9)
565.3
(149.0)
(42.2)
15.1
(1,021.9)
(34.0)
(58.4)
5.1
(38.7)
(82.9)
(77.2)
1,511.5
(17.5)
(98.6)
32.4
63,868.8
As a result of the disposal of Aguas de Antofagasta S.A. (ADASA) and Empresa Ferroviaria Andina S.A. (FCA), their results have
been classified as discontinued operations and excluded from the individual income statement lines, with the 2014 figures restated
onaconsistent basis.
A detailed segmental analysis of the components of the income statement is contained in Note 4 to the financial statements.
The following table reconciles between the 2014 and 2015 EBITDA:
EBITDA in 2014
Revenue
Decrease in copper realised price
Decrease in copper volumes sold
Increase in tolling charges
Decrease in revenue from copper concentrate and cathodes
Decrease in gold revenues
Decrease in silver revenues
Decrease in molybdenum revenues
Decrease in revenue from by-products
Decrease in transport division revenue
Decrease in Group revenue
Operating costs
Decrease in mining costs
Increase in charge for closure provisions
Decrease in exploration and evaluation costs
Decrease in other mining division costs and corporate costs
Decrease in operating costs for mining division
Decrease in transport division operating costs
Decrease in Group operating costs
Decrease in EBITDA
EBITDA in 2015
$m
2,141.4
(1,108.4)
(411.8)
(35.1)
(1,555.3)
(84.7)
(25.0)
(77.5)
(187.2)
(8.5)
(1,751.0)
(432.8)
33.0
(65.6)
(31.6)
(497.0)
(3.3)
(500.3)
(1,250.7)
890.7
Revenue from molybdenum, goldandother by-products
Group revenue in 2015 was $3,394.6 million, 34.0% below the

$5,145.6 million achieved in 2014. The decrease of $1,751.0 million
mainly reflected a decrease in the realised copper price as well as
lower copper sales volumes and by-product revenues.
Revenue from by-products at Los Pelambres and Centinela

relate mainly to molybdenum and gold, and a lesser extent silver.
Revenue from by-products decreased by $187.3 million or 31.5%
to$407.7 million in 2015, compared with $595.0 million in 2014.
Revenue from the mining division
(ii) Copper sales volumes

Copper sales volumes decreased by 11.6% from 703,000 tonnes
in 2014 to 621,200 tonnes in this year, reflecting lower production
at LosPelambres and Centinela. The decrease in sales volumes
accounted for a decrease of $411.8 million in revenue from copper
concentrate and cathode sales.
(iii) Tolling charges
Tolling charges for copper concentrate increased by $35.1 million
to$294.0 million in 2015 from $258.9 million in 2014. This reflected
increased tolling charges at Los Pelambres and Centinela Concentrates,
mainly due to an increase in average tolling charges during the year.
Tolling charges are deducted from concentrate sales in reporting
revenue and hence the increase in these charges has had a negative
impact on revenue.
Revenue from the transport division

Revenue from the transport division (FCAB) decreased by
$8.5 million or 5.3% to $152.4 million. This mainly reflected a
decrease in tonnages transported and the impact of the weaker
Chilean peso.
Operating costs (excluding depreciation, amortisation
and disposals)
Operating costs (excluding depreciation, amortisation and disposals)
amounted to $2,503.9 million (2014 $3,004.2 million), a decrease of
$500.3 million. This was mainly due to lower mining operating costs,
exploration and evaluation costs and other mining costs, partly off-set
by a higher charge in respect of closure provisions.
Operating costs (excluding depreciation, amortisation
anddisposals) at the mining division
Operating costs at the mining division decreased by $497.0 million
to$2,409.9 million in 2015, a decrease of 17.1%.
Excluding by-product credits (which are reported as part of revenue)
and tolling charges for concentrates (which are deducted from
revenue), weighted average cash costs for the Group (comprising
onsite and shipping costs in the case of Los Pelambres and Centinela
and cash costs in the case of Centinela and Michilla) decreased by
$0.07/lb to $1.58/lb.
Exploration and evaluation costs decreased by $65.6 million to
$101.9 million (2014 $167.5 million). This mainly reflected decreases
in expenditure relating to exploration and studies in the Centinela
district and international exploration.
The income statement had a charge relating to mine closure
provisions of $25.8 million (2014 credit of $7.2 million), mainly
reflecting an increased charge at Los Pelambres.
Operating costs (excluding depreciation, amortisation and disposals)
at the transport division decreased by $3.3 million to $94.0 million,
mainly reflecting the weaker Chilean peso.
Antofagasta plc 65
OTHER INFORMATION
Provisional pricing adjustments decreased initially invoiced sales

(before adjusting for tolling charges) by $295.6 million in 2015,
compared with a decrease of $201.7 million in 2014. The negative
adjustments in the current year mainly reflected the decrease in
the copper price in 2015 and to a lesser extent a negative year end
mark to market adjustment. Further details of provisional pricing
adjustments are given in Note 5 to the financial statements.
Revenue from silver in concentrate decreased by $25.0 million to

$50.4 million in 2015 (2014 $75.4 million). The decrease was due to
adecrease in the realised silver price from $18.7/oz in 2014 to $15.5/oz
in 2015, as well as decreased sales volumes of 3.3 million ounces
(2014 4.1 million ounces).
Realised copper prices are determined by comparing revenue

(gross of tolling charges for concentrate sales) with sales volumes
in the year. Realised copper prices differ from market prices mainly
because, in line with industry practice, concentrate and cathode sales
agreements generally provide for provisional pricing at the time of
shipment with final pricing based on the average market price for
future years (normally about 30 days after delivery to the customer
in the case of cathode sales and up to 150 days after delivery to the
customer in the case of concentrate sales). Realised copper prices
also reflect the impact of realised gain or losses of commodity
derivative instruments hedge accounted for in accordance with
IAS39 Financial Instruments: Recognition and Measurements.
Revenue from molybdenum (net of roasting charges) was

$105.3 million (2014 $182.8 million), a decrease of $77.5 million.
The decrease was mainly due to a lower realised price of $5.7 per
pound (2014 $11.0 per pound) partly offset by increased sales
volumes of 9,900 tonnes (2014 8,200 tonnes).
GOVERNANCE
(i) Realised copper prices

The Groups average realised copper price decreased by 24.0% to
$2.28/lb in 2015 (2014 $3.00/lb). The level of decrease was higher
than the reduction in the average LME copper price, which decreased
by 19.8% to $2.50/lb from $3.11 in 2014, due to a higher level of
negative provisional pricing adjustments in the current year compared
with the prior year. The decrease in average realised prices led to a
$1,108.4 million reduction in revenue from copper concentrate and
cathode sales.
STRATEGIC REPORT
Revenue from copper concentrate and copper cathodes

Revenue from copper concentrate and copper cathode sales
decreased by $1,555.2 million, or 36.1%, to $2,834.5 million,
compared with $4,389.7 million in 2014. The decrease reflected
the impact of lower realised prices, lower volumes and increased
tolling charges.
Revenue from gold in concentrate (net of tolling charges) was

$252.1 million (2014 $336.8 million), a decrease of $84.7 million,
which mainly reflected a decrease in volumes, as well as a lower
realised gold price. Gold sales volumes decreased from 267,400
ounces in 2014 to 219,200 ounces in 2015, mainly due to the lower
gold grades at Centinela in the second half of the year. The realised
gold price was $1,155/oz in 2015 compared with $1,262/oz in 2014,
with the decrease largely reflecting the general reduction in average
market prices.
OVERVIEW
Revenue
Financial review
EBITDA and operating profit from subsidiaries

andjointventures
EBITDA
EBITDA (earnings before interest, tax, depreciation, and amortisation)
from subsidiaries and joint ventures decreased by $1,250.7 million
or58.4% to $890.7 million in 2015 (2014 $2,141.4 million).
EBITDA at the mining division decreased by 59.9% from
$2,077.8 million in 2014 to $832.3 million in 2015. As explained
above, this was mainly due to the decrease in revenue as a result
of the lower realised copper price and copper sales volumes, partly
offset by lower operating costs.
EBITDA at the transport division decreased by $5.2 million
to $58.4 million in 2015, reflecting the decreased revenue
asexplained above.
Other finance items comprised a loss of $23.6 million (2014 loss

of$36.3 million). A gain of $0.1 million (2014 loss of $5.1 million)
has been recognised in respect of the time value element of changes
in the fair value of commodity derivative options, which is excluded
from the designated hedging relationship, and is therefore recognised
directly in profit or loss. Foreign exchange losses included in finance
items were $13.6 million in 2015, compared witha gain of $4.0 million
in 2014. An expense of $9.1 million (2014 $8.9 million) has been
recognised in relation to the unwinding of the discount on provisions.
An impairment charge of $26.3 million was recognised in 2014 in
respect of Duluth Metals shares, with fair value losses previously
recorded within the Consolidated Statement of Comprehensive
Income being transferred to the income statement and recognised
within this impairment loss, further details are given in Note 8 to the
Depreciation, amortisation and disposals

The depreciation, amortisation and disposals charge was higher
at $586.3 million (2014 $557.8 million). Increased depreciation
at Centinela and Los Pelambres was partly offset by a decrease
at Michilla.
Profit before tax
Operating profit from subsidiaries

As a result of the above factors, operating profit from subsidiaries
decreased by 80.8% to $304.4 million.
Income tax expense
As a result of the factors set out above, profit before tax decreased
by $1,256.2 million or 82.9% to $259.4 million in 2015 compared
with$1,515.6 million in 2014.
The tax charge in 2015 was $160.4 million (2014 $702.3 million) and
the effective tax rate was 61.8% (2014 46.3%).
Year ended
31.12.2015
$m
Share of results from associates and joint ventures

The Groups share of results from its associates and joint ventures
was a loss of $5.8 million (2014 loss of $4.1 million). This mainly
reflects losses at the Zaldvar joint venture partly offset by higher
profits at the Inversiones Hornitos associate.
Net finance expense
Net finance expense in 2015 was $39.2 million, compared with a net
finance expense of $63.9 million in 2014.
Investment income
Interest expense
Other finance items
Net finance expense
Year ended
31.12.15
$m
Year ended
31.12.14
$m
18.1
(33.7)
(23.6)
(39.2)
16.8
(44.4)
(36.3)
(63.9)
Interest income increased from $16.8 million in 2014 to $18.1 million

in 2015, mainly reflecting additional interest income in respect of
aloan from Los Pelambres to the Alto Maipo associate.
Interest expense decreased from $44.4 million in 2014 to $33.7 million
in 2015, mainly due to a decrease of interest payable at Centinela
reflecting one-off costs incurred in 2014 as a consequence
ofarefinancing in that year.
Profit before tax

Taxes (current
anddeferred)
Corporate tax
Adjustment to deferred
tax attributable to
changes in tax rates
Mining tax
Withholding tax
Exchange rate
Total tax charge
Effective
tax rate
%
Year ended
31.12.2014
$m
Effective
tax rate
%
1,515.6
259.4
(110.6)
42.6
(350.9)
21.8
(34.0)
(14.8)
(1.0)
(160.4)
13.1
5.7
0.4
61.8
(215.1)
(79.1)
(56.8)
(0.4)
(702.3)
14.2
5.2
3.7
46.3
The tax charge for 2015 was $160.4 million and the effective tax rate
was 61.8%. The statutory rate of Chilean corporate (first category)
tax in 2015 was 22.5% (2014 20%). In 2015, the effective tax rate
varied from the statutory rate principally due to tax losses which
under Chilean tax carry-back rules generated a credit at historic tax
rates below the current year statutory rate, as well as the effect
of expenses not deductible for Chilean corporate tax purposes
(principally the funding of expenses outside of Chile) and the effects
of the mining tax which resulted in a charge of $34.0 million and
a withholding tax charge of $14.8 million. In 2014, the effective
tax rate varied from the standard rate (comprising corporate (first
category) tax) principally due to the one-off deferred tax charge of
$215.1 million reflecting the increase in tax rates as a result of the
Chilean tax reform enacted in that year. Further details are given
inNote 9 tothefinancial statements.
Capital expenditure (including discontinued operations) decreased

by $568.4 million from $1,581.0 million in 2014 to $1,012.6 million in
2015. This was mainly due to lower construction expenditure at the
Antucoya project, where construction substantially completed during
2015. NB: capital expenditure figures quoted in other sections of this
report are on a cash flow basis, unless stated otherwise.
The profit for the year from discontinued operations was

$602.7 million, compared with $37.4 million in 2014, reflecting a net
profit on disposal of $595.2 million (2014 nil) and a net profit from
operations prior to disposal of $7.5 million (2014 $37.4 million).
Further details are given in Note 10 to the financial statements.
Derivative financial instruments
Non-controlling interests
Profit for the year attributable to non-controlling interests was
$93.5 million, compared with $390.9 million in 2014, reflecting
the lower profit attributable to the non-controlling interests as
a consequence of the decrease in the earnings of the mining
operations analysed above.
The Group periodically uses foreign exchange derivatives to cover

expected operational cash flow needs. At 31 December 2015, the
Group had no foreign exchange derivatives.
Year ended
31.12.15
US cents
Year ended
31.12.14
US cents
0.6
42.8
61.7
46.6
Dividends
Dividends per share proposed in relation to the year are as follows:
Year ended
31.12.14
US cents
3.1
3.1
11.7
9.8
21.5
The Board determines the appropriate dividend each year based on

consideration of the Groups cash balance, the level of free cash flow
and earnings generated during the year and significant known or
expected funding commitments. It is expected that the total annual
dividend for each year would represent a payout ratio based on net
earnings for that year of at least 35%.
The total dividend for the year is 3.1 cents per share, or $30.6 million,
which was paid as the interim dividend, and exceeds the Groups
35% minimum payout ratio dividend policy for the year. Therefore,
nofinal dividend has been recommended by the Board.
The key features of the Group cash flow statement are summarised
in the following table.
Cash flows from operations

Income tax paid
Net interest paid
Capital contribution and loan to associates
Acquisition of joint venture
Disposal of subsidiaries
Acquisition of mining interests
Purchases of property, plant and equipment
Dividends paid to equity holders of the Company
Dividends paid to non-controlling interests
Dividends from associate
Other items
Changes in net cash relating to cash flows
Exchange and other non-cash movements
Movement in net cash in the year
Net cash at the beginning of the year
Net cash at the end of the year
Year ended
31.12.15
$m
Year ended
31.12.14
$m
858.3
(427.1)
(27.6)
(112.0)
(972.8)
942.9
(78.0)
(1,048.5)
(127.2)
(80.0)
12.1
74.4
(985.5)
(36.4)
(1,021.9)
(1.6)
(1,023.5)
2,507.8
(641.5)
(28.9)
(125.2)
(1,646.3)
(964.2)
(412.2)
20.0
5.2
(1,285.3)
(27.5)
(1,312.8)
1,311.2
(1.6)
Cash flows from operations were $858.3 million in 2015 compared

with $2,507.8 million in 2014. This reflected EBITDA for the year of
$890.7 million (2014 $ 2,141.4 million) adjusted for a net working
capital increase of $32.4 million (2014 decrease of $286.2 million).
Antofagasta plc 67
OTHER INFORMATION
Ordinary
Interim
Final
Total dividends to ordinary shareholders
Year ended
31.12.15
US cents
Cash flows
Earnings per share calculations are based on 985,856,695

ordinary shares. As a result of the factors set out above, profit
in 2015 attributable to equity shareholders of the Company was
$608.2 million compared with $459.8 million in 2014. Accordingly,
earnings per share were 61.7 cents in 2015 compared with 46.6
cents in 2014, an increase of 32.3%.
The Group also periodically uses interest rate swaps to swap the
floating rate interest for fixed rate interest. At 31 December 2015, the
Group had entered into contracts in relation to the Centinela financing
for a maximum notional amount of $105 million at a weighted average
fixed rate of 3.372% fully maturing in August 2018. The Group had
also entered into contracts in relation to a financing loan at FCAB for
amaximum notional amount of $120 million at weighted average
fixed rate of 1.634% fully maturing in August 2019.
GOVERNANCE
Earnings per share
Earnings per share from continuing operations

Earnings per share from continuing
and discontinued operations
The Group periodically uses derivative financial instruments to reduce

exposure to commodity price movements. At 31 December 2015,
the Group had commodity swaps for 300 tonnes of copper production
covering a total year up to 31 January 2016. The Groups exposure
tothe copper price was limited by the extent of these instruments.
STRATEGIC REPORT
Capital expenditure
During the year the Group completed the disposal of its water
division, Aguas de Antofagasta S.A. (ADASA) as well as part of its
transport division. The results of these operations for the year prior
to disposal as well as the profit on disposal have been presented
on the Profit for the year from discontinued operations line in the
income statement.
OVERVIEW
Financial review
Cash tax payments in 2015 year were $427.1 million (2014

$641.5 million), comprising corporation tax of $249.7 million (2014
$264.0 million), mining tax of $32.2 million (2014 $98.2 million)
and withholding tax of $145.2 million (2014 $279.3 million).
These amounts differ from the current tax charge in the consolidated
income statement of $160.4 million (2014 $702.3 million)
mainly because cash tax payments for withholding tax includes
$132.4 million related to the disposal of ADASA and therefore is
disclosed within the results from discontinued operations. In addition,
under the Chilean tax regime the Group has prepaid taxes at rates
higher than the final effective tax rate. As a consequence, the Group
has current tax receivables of $319.5 million at 31 December 2015.
Contributions and loans to associates and joint ventures of
$112.0 million mainly relate to the Groups share of the funding
ofthedevelopment of the Alto Maipo project.
Cash disbursements relating to capital expenditure (including
discontinued operations) in 2015 were $1,048.5 million compared
with $1,646.3 million in 2014. This included expenditure of
$143.4 million at Antucoya (2014 $734.6 million), $559.4 million
relating to Centinela (2014 $566.9 million) and $203.1 million relating
to Los Pelambres (2014 $230.0 million). NB: capital expenditure
figures quoted in other sections of this report are on a cash flow
basis, unless stated otherwise.
Dividends paid to ordinary shareholders of the Company in 2015
were $127.2 million (2014 $964.2 million), which related to the
final dividend declared in respect of the previous year and the 2015
interim dividend.
Dividends paid by subsidiaries to non-controlling shareholders were
$80.0 million (2014 $412.2 million), consisting of distributions by
Los Pelambres.
Financial position
Cash, cash equivalents and liquid investments

Total borrowings
Net cash at the end of the year
At
31.12.15
$m
At
31.12.14
$m
1,731.6
(2,755.1)
(1,023.5)
2,374.5
(2,376.1)
(1.6)
At 31 December 2015, the Group had combined cash, cash

equivalents and liquid investments of $1,731.6 million (31 December
2014 $2,374.5 million). Excluding the non-controlling interest share
in each partly-owned operation, the Groups attributable share of
cash, cash equivalents and liquid investments was $1,410.8 million
(31 December 2014 $2,007.0 million).
New borrowings in 2015 were $725.9 million (2014 $1,583.4 million),
mainly due to new short-term borrowings at Los Pelambres
of $312.0 million, Centinela of $200.0 million and Antucoya of
$30.0 million. Repayments of borrowings and finance leasing
obligations in 2015 were $288.3 million (2014 570.9 million),
relating mainly to regular repayments on existing loans of
$34.9 million and repayments on short-term loans at Los Pelambres
of $205.9 million and regular repayments of existing loan of
$30.0 million at Ferrocarril Antofagasta Bolivia.
Total Group borrowings at 31 December 2015 were

$2,755.1 million (2014 $2,376.1 million). Of this, $1,936.2 million
(2014 $1,691.6 million) is proportionally attributable to the Group
afterexcluding the non-controlling interest shareholdings in
partlyowned operations.

forwardlookingstatements
This Annual Report contains certain forward-looking statements.
All statements other than historical facts are forward-looking
statements. Examples of forward-looking statements include those
regarding the Groups strategy, plans, objectives or future operating
or financial performance; reserve and resource estimates; commodity
demand and trends in commodity prices; growth opportunities;
and any assumptions underlying or relating to any of the foregoing.
Words such as intend, aim, project, anticipate, estimate,
plan, believe, expect, may, should, will, continue
andsimilar expressions identify forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors that are beyond the
Groups control. Given these risks, uncertainties and assumptions,
actual results could differ materially from any future results expressed
or implied by these forward-looking statements, which speak only as
at the date of this report. Important factors that could cause actual
results to differ from those in the forward-looking statements include:
global economic conditions; demand, supply and prices for copper;
long-term commodity price assumptions, as they materially affect the
timing and feasibility of future projects and developments; trends in
the copper mining industry and conditions of the international copper
markets; the effect of currency exchange rates on commodity prices
and operating costs; the availability and costs associated with mining
inputs and labour; operating or technical difficulties in connection with
mining or development activities; employee relations; litigation; and
actions and activities of governmental authorities, including changes
in laws, regulations or taxation. Except as required by applicable law,
rule or regulation, the Group does not undertake any obligation to
publicly update or revise any forward-looking statements, whether
asa result of new information, future events or otherwise.
Past performance cannot be relied on as a guide to
future performance.
Governance
70
Leadership
72
How the Board and its Committees operate
72
Board of Directors
74
Executive Committee
77
Information and professional development
82
84
Accountability
85
Board Committees
85
Audit and Risk Committee
86
Nomination and Governance Committee
90
Sustainability and Stakeholder

93
Projects Committee
95
Remuneration
96
Annual Statement by the Chairman of the

Remuneration and Talent Management Committee
96
Summary of Directors Remuneration Policy
98
Annual Report on Remuneration 2015
99
Relations with shareholders
112
Directors Report
114
Statement of Directors Responsibilities
116
79
GOVERNANCE
79
STRATEGIC REPORT
Effectiveness
OVERVIEW
Corporate Governance Report
OTHER INFORMATION
Antofagasta plc 69
Further details on the Groups talent management and succession

planning initiatives are set out in the Remuneration Report on
page97.
We believe that good corporate governance is fundamental to our
success and I believe that we are in a strong position not only to face
the current challenges that I identified in my introductory letter on
page 5 but to continue to refine and execute our strategy to secure
long-term growth and profitability.
Engaging with our shareholders
Leadership
How the Board and its committees operate.

For more information see pages 72 to 78.
Effectiveness
How the Board is balanced, how and what information

flows through it and performance in 2015.
Accountability
How the Board and its committees oversee the

Companys position and prospects and assess risk.
Remuneration
How the Board and its committees ensure that

executive pay is aligned with performance, strategy
and the interests of shareholders.
How the Board, its committees and the Company

engage with shareholders and potential investors.
For more information see pages 112 and 113.
Dear Shareholder,
I am pleased to present the Antofagasta plc Corporate Governance
Report for the year ended 31 December 2015.
One of my key responsibilities as Chairman is to promote good
corporate governance and we have taken great strides in recent years
to enhance our internal control and governance structures, processes
and procedures. We have worked hard to ensure that we have the
right people performing the right roles to shape the Groups strategy
and to drive, probe and report on its implementation. We have
invested in talent management and succession planning and now
have a strong pipeline of talent at various stages of development
to fill these roles in the future.
During 2015 I met with a number of our shareholders to hear

their views about our Company, its strategy, management
and governance. During these meetings we discussed a wide
range of topics. These included how they used proxy voting
agencies recommendations, board composition and diversity, the
categorisation of independence for a Director, talent management
and succession planning, the application of the comply and
explain principle and aligning executive remuneration with strategy.
These meetings allowed me to explain the changes to the Boards
structure in 2014, to update shareholders on progress following these
changes and to understand how corporate governance developments
are likely to assist us in the years ahead.
Once again, our Senior Independent Director, William Hayes, met
with a number of shareholders to develop a balanced understanding
of their issues and concerns. Further details of these meetings are
setout on page 113.
Remuneration
Following the recent wave of changes to Executive remuneration
reporting legislation and guidance, the Remuneration and Talent
Committee, led by its Chairman, Tim Baker, commissioned an
internal review of the effectiveness of the Groups Executive pay
arrangements, including the impact of safety performance on
Executive pay. As part of this review, Tim Baker met with a number
of industry and other FTSE 100 Remuneration Committee Chairmen
in London to share and learn from their experiences. The changes
that we have made to Executive incentives as a consequence of this
review are set out in the Remuneration Report on pages 96 to 111.
We have once again voluntarily reported on the remuneration and
incentive pay design for Diego Hernndez as if he was a member
ofthe Board.
Our first full year of Corporate Governance Code compliance
In 2014 we changed many of our internal control and governance
structures, processes and procedures in order to benefit from what
we perceived to be sensible and beneficial governance practice.
As a result, we are delighted to report that for the first time we have
complied with all the detailed provisions of the Corporate Governance
Code during 20151.
1T
he UK Corporate Governance Code issued by the Financial Reporting Council in September
2014 (the Code) (available on the Financial Reporting Council website at www.frc.org.uk)
sets out the governance principles and provisions that applied to the Company during
the2015financial year.

As part of these changes we decided to improve our focus on
governance and the Nomination Committee became the Nomination
and Governance Committee, with responsibility for monitoring
and recommending improvements to the Boards governance
arrangements. The Committee has been instrumental in helping
theBoard further develop its governance framework which includes
a clear description of matters reserved for the Board, terms of
reference for Board Committees and specific responsibilities
oftheChairman, Group CEO and Senior Independent Director.
Substantial shareholdings
As at 31 December 2015 and 14 March 2016, the following
significant holdings of voting rights in the share capital of the
Company had been disclosed to the Company under Disclosure
andTransparency Rule 5:
1
1
Improving performance is a continuous process. Last year, we

reported on the steps taken since our first external evaluation of
the Board in 2013 and demonstrated that steady and significant
progress had been made to implement the recommendations.
This improvement was supported by the results of a separate internal
evaluation exercise in 2014, the findings of which were also used to
prioritise areas for improvement in an action plan for 2015. In 2015,
we focused on those priorities and improvement was once again
supported by the results of a separate internal review.
3
GOVERNANCE
2
3
2
Ordinary
Preference
share capital share capital
%
%
Sustainability and community engagement
One of the keys to good communication between management

and the Board is an effective relationship between the Chairman
and Chief Executive. This is something that Diego and I have
achieved during our first full year as Non-Executive Chairman and
Group CEO. In 2016 the Board and I plan to continue to focus on
strengthening the interface between the Board and its Committees
and management to ensure that the Groups strategy continues
tobeimplemented effectively.
Open to questions
In the following pages, we outline our approach to corporate
governance and demonstrate how our governance practices support
this approach. This year our reporting follows the order of the main
principles of the Corporate Governance Code.
As always, I welcome questions or comments from shareholders
either via our website www.antofagasta.co.uk or in person at the
Annual General Meeting.
Jean-Paul Luksic
Chairman
50.72
9.94
4.26
94.12
58.04
8.27
3.54
Metalinvest Establishment and Kupferberg Establishment

are both controlled by the E. Abaroa Foundation (Abaroa),
in which members of the Luksic family are interested.
As explained in Note 38 to the financial statements, Metalinvest
Establishment is the immediate Parent Company of the Group
and the E. Abaroa Foundation is the ultimate Parent Company.
Aureberg Establishment is controlled by the Severe Studere
Foundation that, in turn, is controlled by Jean-Paul Luksic, the
Chairman of the Company.
Relationship agreement
Abaroa is a controlling shareholder of the Company under the
Listing Rules and certain other shareholders of the Company
(including Aureberg Establishment), are also treated as
controlling shareholders.
In 2014 the Company entered into relationship agreements
with each controlling shareholder, which contain the mandatory
independence provisions required by the Listing Rules.
The Company has complied and, so far as the Directors are aware,
each controlling shareholder and its associates have complied with
the mandatory independence provisions at all times during 2015.
The Group has had a controlling shareholder since 1980.
As a practical matter, the Board agreed some years ago that any
proposed transaction between the Company and any controlling
shareholder or its associates that is not in the ordinary course of
business must be presented to the Board regardless of its size.
Although infrequent, these transactions are considered, and
if appropriate, approved by a committee of Directors who are
independent from the controlling shareholder.
etails of the Companys capital structure and Directors authority to
D
issueand buyback shares of the Company are set out in the Directors
Report onpage 115.
Antofagasta plc 71
OTHER INFORMATION
Key objectives for 2016
1 Metalinvest Establishment
2 Kupferberg Establishment
3 Aureberg Establishment
Total share
capital
%
At the operations level, it is essential that we are, and continue to

be, a good neighbour. As explained in the Managing a sustainable
business section of the Strategic Report on page 59, Minera Los
Pelambres is located in the Choapa River valley in the central region
of Chile and our recently launched Somos Choapa (WeAre
Choapa) Programme sets up forums for the Company, communities
and authorities to discuss social and other needs and transform them
into plans for everyones benefit. This programme has demonstrated
the power of constructive dialogue and offers fresh perspectives on
working with our neighbours and jointly developing our communities.
The implementation of this programme was overseen by the
Sustainability and Stakeholder Management Committee and more
detail is set out in the Sustainability and Stakeholder Management
Report on pages 93 and 94.
STRATEGIC REPORT
Board performance evaluation
Following the demonstrated improvements arising from the

recommendations made in the 2013 external review, we have once
again commissioned an external review in 2016. More details on the
2015 internal review and scope of the 2016 external review can be
found on page 84.
OVERVIEW
Leveraging this framework in 2015, the Committee reviewed

policies and procedures relating to diversity, succession planning
and UK market obligations. The Committee will continue to focus on
succession planning at Board level to ensure that our Committees
continue to be appropriately staffed and that we continue to maintain
a strong and committed Board with broad and complementary skills
and experiences. More detail on the activities of the Nomination and
Governance Committee during the year can be found on pages 90
to 92.

Leadership
How the Board and its Committees operate
Antofagasta plc Board
Board Committees
The Board
The Board is collectively responsible for the long-term success of
the Group. It is responsible for its leadership and strategic direction,
and for the oversight of the Groups performance, risk and internal
control systems.
Audit and Risk

Committee
Nomination
and
Governance
Committee
Sustainability
and
Stakeholder
Management
Committee
Projects
Committee
Remuneration
and Talent
Management
Committee
Key responsibilities include:
Board committees
responsibility for the overall strategic management ofthe Group;
The Board is assisted in the fulfilment of its responsibilities by the

five Board Committees above. The Board has delegated authority
to the Committees to perform certain activities as set out in their
terms of reference.
changes to the capital, corporate structure, seniormanagement

and control structure;
approval of preliminary announcements, financial reports, dividend
policy and proposals, and significant changes in accounting
policies or practices;
ensuring a sound system of internal control and riskmanagement
and determining the nature and extent ofprincipal risks that the
Group is willing to take in achieving itsstrategic objectives;
approving material contracts and transactions;
reviewing and approving changes to the Boards structure, size
and composition, ensuring adequate succession planning for the
Board, approving appointments to the boards of key subsidiaries
and the appointment or removal of the Company Secretary;
recommending the appointment, re-appointment or removal of
the external auditor to shareholders for approval, following the
recommendation of the Audit andRisk Committee;
submitting the Directors Remuneration Policy to shareholders
forapproval and approving the Directors remuneration;
appointing and delegating authority to the Group CEO and
ensuring that there is adequate succession planning for the
GroupCEO and senior management;
reviewing the Groups overall corporate governance
arrangements, receiving reports of the views of the Companys
shareholders, undertaking a formal and rigorous annual review
of its own performance, as well as that of the Committees and
individual Directors, determining the independence of Directors,
receiving declarations of interest from Directors and authorising
any Directors conflict of interest;
approving key corporate policies and the schedule of matters
reserved for the Board; and
establishing Committees of the Board that provide assistance
onany of the matters set out above.
Matters which are required to be decided by the Board are set out
inthe schedule of matters reserved for the Board which is available
on the Companys website at www.antofagasta.co.uk.
A summary of the activities of the Board during the year is set out
onpage81.
The Chairman of each committee reports to the Board following

each Committee meeting, allowing the Board to understand and
discuss matters considered in detail by the Committee and/or
adopt recommendations.
Terms of reference of the Projects Committee were adopted in
August 2015 and the terms of reference for each Committee were
amended in 2015 and are available on the Companys website
atwww.antofagasta.co.uk.
summary of the activities of each of the committees during the
A
yearissetout on pages 85 to 96.
Group CEO
Group CEO and the Executive Committee
The Board has delegated responsibility for implementing the
Groups strategic and financial objectives to Diego Hernndez.
Mr Hernndez leads the teams with executive responsibility for
running the Groups businesses.
Mr Hernndez is not a Director of Antofagasta plc but is invited
to attend Board, Audit and Risk, Sustainability and Stakeholder
Management, Projects and Remuneration and Talent Management
Committee meetings.
The mining division is managed by the Antofagasta Minerals
Executive Committee under the leadership of Ivn Arriagada,
theCEO of Antofagasta Minerals.
Details of the members of the Executive Committee are set out
onpages77and 78.
The Executive Committee reviews significant matters in respect

ofthe mining division and approves capital expenditures by the
mining operations and the corporate centre within designated
authority levels, leads the annual budgeting and planning processes,
monitors the performance of the mining operations, and promotes
the sharing of best practices and policies across the operations.
The Executive Committee is assisted in the performance of
its responsibilities by the Operational Performance Review
Committee, the Business Development Committee and certain
Steering Committees set up to oversee important projects.
The responsibilities of these Committees is set out opposite.
Members of the Executive Committee also sit on the boards
of the Groups operating companies and periodically report to
MrHernndez and the Executive Committee on the activities
ofthose companies.
Committee roles at the executive level are set out in the Executive
Committee biographies on pages 77 and 78.
OVERVIEW
Antofagasta plc Board
Audit and Risk

Committee
Sustainability
and
Stakeholder
Management
Committee
Pages 90 to 92
Projects
Committee
Pages 95 and 96
Remuneration
and Talent
Management
Committee
STRATEGIC REPORT
Pages 86 to 89
Nomination
and
Governance
Committee
Pages 96 to 111
Pages 93 and 94
Group CEO
Transport
GOVERNANCE
Mining
Antofagasta Minerals
Executive Committee
Pages 77 and 78
Operational
Performance
Review Committee
Business
Development
Committee
Steering
Committees
The Operational Performance Review

Committee monitors the Groups
operations, with a focus on budgets,
operational risks and investments.
It supports and validates technical
and operational decisions and is
responsible for approving operational
expenditures within approved budgets
and small capital expenditures up to
aset amount.
The Business Development

Committee focuses on the mining
divisions growth opportunities, both
in relation to internal projects and
potential transactions. It also oversees
the implementation of the strategic
business development guidelines
and reviews and approves decisions
regarding the portfolio of development
in light of those strategic guidelines
and within the approved budget and
designated authority levels.
The Executive Committee sets up

Steering Committees to monitor
the implementation of important
projects undertaken by the Group,
both in the execution and study
phases. The Steering Committees
aregenerally responsible for
approvingtechnical and strategic
project decisions, as well as approving
certain expenditures within approved
budgets and up toaset amount.
Antofagasta plc 73
OTHER INFORMATION
BD
OP

Leadership
Board of Directors
2
9
10
7
3
8
1
5
11
1
2
3
4
5
6
7
8
9
10
11
Jean-Paul Luksic
William Hayes
Gonzalo Menndez
Ramn Jara
Juan Claro
Hugo Dryland
Tim Baker
O
llie Oliveira
Andrnico Luksic
Vivianne Blanlot
Jorge Bande
Key to Committees
Audit and Risk
Nomination and Governance
Sustainability and
Stakeholder Management
Projects
Remuneration and
Talent Management
Key areas of expertise
Mining
Sustainability
Financial
Government Relations
Industry
Energy
Legal
Chairman
1 Jean-Paul Luksic
4 Ramn Jara
Chairman, 51
Non-Executive Director, 62
Independent: No
Independent: No
The Company is controlled by foundations in which members of the Luksic family

are interested. Brother of Andrnico Luksic. NonExecutive Director of Quienco
and other companies in the Quienco group in common with Andrnico Luksic and
Gonzalo Menndez. Quienco is also controlledby foundations in which members
of the Luksic family are interested.
Provides advisory services to the Group.
Appointed Chairman 2004 (Non-Executive since September 2014).
Appointed to the Board 2003

Lawyer with wide-ranging legal and commercial experience in Chile.
Current positions:
Chairman of the Fundacin Minera Los Pelambres (charitable foundation)
Director of the Fundacin Andrnico Luksic A. (charitable foundation)
Over 20 years experience with Antofagasta, including responsibility for overseeing

development of the Los Pelambres and El Tesoro (Centinela Cathodes) mines.
STRATEGIC REPORT
OVERVIEW
Chairman
Previous roles:
Chief Executive Officer of Antofagasta Minerals
Chairman of the Consejo Minero, the industry body representing the largest
mining companies operating in Chile
Non-Executive Director of Quienco S.A. and other listed companies in the
Quienco group: Banco de Chile and Sociedad Matriz SAAM S.A.
5 Juan Claro
Independent: No
Served on the Board for more than nine years concurrently with the Chairman
whenhe was performing the role of Executive Chairman.
GOVERNANCE
Current positions:

Chairman
2 William Hayes
Extensive industrial experience in Chile, including an active role representing

Chilean industrial interests nationally and internationally.
Previous roles:
Extensive financial and operational experience in the copper and gold mining
industries in Chile, Latin America, North America and South Africa.
Current positions:
Independent: Yes
Previous roles:
OTHER INFORMATION
Senior executive with Placer Dome Inc.

Chairman of the Consejo Minero, the industry body representing the largest
mining companies operating in Chile
Chairman of the Gold Institute in Washington DC
Chairman of Coca-Cola Andina S.A. and Energa Coyanco S.A.

Director of several other companies in Chile, including Entel Chile S.A.,
Empresas Cementos Melon and Agrosuper
Member of the governing board of Centro de Estudios Pblicos, a Chilean
not-for-profit foundation
Current positions:
Chairman of Royal Gold Inc
6 Hugo Dryland
3 Gonzalo Menndez
Independent: No
Provides advisory services to the Group in his capacity as a Vice-Chairman

atRothschild, which is a financial advisor to the Group.
Independent: No
Non-Executive Director of Quienco and other companies in the Quienco group in

common with Jean-Paul Luksic and Andrnico Luksic. Quienco is also controlled
byfoundations in which the Luksic family are interested.
Lawyer with extensive expertise in corporate finance and M&A within the mining
sector, with over 25 years of investment banking experience in natural resources
with the Rothschild group.
Previous roles:
Qualified accountant with extensive experience in commercial and financial

businesses across Latin America.
Practising lawyer in the United States, specialising in the natural resources

andinfrastructure sectors
Lawyer assigned to the energy group at the World Bank
Current positions:
Chairman of the Board of Directors of Banco Latinoamericano de Comercio
Exterior S.A. (Bladex)
Director of Quienco S.A. and other listed companies in the Quienco group,
including Banco de Chile
Chairman of the Sociedad de Fomento Fabril (Chilean Society of Industrialists)

Chairman of the Confederacin de la Produccin y del Comercio
(Confederationof Chilean Business)
Chairman of the Consejo Binacional de Negocios Chile-China
(Council for Bilateral Business Chile-China)
Senior Independent Director, 71
Current positions:
Executive Vice-Chairman of NM Rothschild & Sons
Global head of Rothschilds investment banking activities in the mining
andmetals sector
Antofagasta plc 75

Leadership
Board of Directors
Chairman
7 Tim Baker
10 Vivianne Blanlot
Independent: Yes
Independent: Yes
Geologist with significant mining operational experience across North and

SouthAmerica and Africa which has included managing mining operations in Chile,
the United States, Tanzania and Venezuela and geological and operating roles in
Kenya and Liberia.
An economist with extensive experience across the energy, mining,

waterandenvironmental sectors in the public and private sectors in Chile.
Previous roles:
Vice President and Chief Operating Officer at Kinross Gold Corporation
General Manager of Placer Dome Chile
Current positions:
Chairman of Golden Star Resources
Director of Sherritt International Corporation
Chairman
Previous roles:
Executive Director of the Comisin Nacional de Medio Ambiente
(EnvironmentalAgency in Chile)
Undersecretary of Comisin Nacional de Energa
(National Energy Commissionin Chile)
Minister of Defence
Current positions:
Director of Colbn S.A., an energy company listed in Chile
Director of ScotiaBank Chile
Member of the Consejo Para La Transparencia (Transparency Council),
theChilean body responsible for enforcing transparency in the public sector
8 M
anuel Lino Silva De SousaOliveira (Ollie Oliveira)
Independent: Yes
11 Jorge Bande
Chartered accountant, chartered management accountant and economist with

over 35 years of strategic and operational experience in the mining industry and
corporate finance.
Independent: Yes
Previous roles:
Senior executive positions within the Anglo American group, including Executive
Director Corporate Finance and Head of Strategy and Business Development
ofDe Beers S.A.

Economist with over 30 years experience in the mining industry.
Previous roles:
9 Andrnico Luksic
Co-founder and Executive Director of Copper and Mining Studies (CESCO),

anindependent not-for-profit think tank focused on mining policy issues
Vice President of Development and later Director of Codelco
CEO of AMP Chile
Advisor to the World Bank
Member of the Global Agenda Council for Responsible Minerals Resource
Management at the World Economic Forum
Director of Edelnor S.A. and Electroandina S.A. (now E-CL S.A.)
Current positions:
Independent: No
Director of CESCO, Inversiones Aguas Metropolitanas S.A. and Bupa Chile S.A.
Professor of the International Post-Graduate Programme in Mineral Economics
atthe University of Chile
Member of the Experts Committee for Copper Prices for the Chilean Ministry
of Finance
The Company is controlled by foundations in which the Luksic family are interested.
Brother of Jean-Paul Luksic. Chairman of Quienco and Chairman or Director of
other companies in the Quienco group, in common with Jean-Paul Luksic and
Gonzalo Menndez. Quienco is also controlled by foundations in which members
of the Luksic family are interested.

Extensive experience across a range of business sectors throughout Chile,
LatinAmerica and Europe.
Current positions:
Chairman of Quienco S.A. and Compaa Cerveceras Unidas S.A.,
ViceChairman of Banco de Chile and a director of Tech Pack S.A.,
all of which are listed companies in the Quienco group
Director of Nexans S.A., a company listed on NYSE Euronext Paris

Leadership
Executive Committee
Key to Committees
OP
Operational Performance
Review Committee
BD
Business Development
Committee
E
8
Ethics Committee
GOVERNANCE
STRATEGIC REPORT
BD
BD
2 Ivn Arriagada
CEO of Antofagasta Minerals
Joined the Group in 2012
Mining engineer with over 40 years of senior management experience with major
international mining companies with operations in Latin America.
Commercial engineer and economist with over 20 years experience in the mining,
metalsand oil and gas sectors.
Previous roles:
Previous roles:
Chief Executive Officer of Antofagasta Minerals

Chief Executive Officer of Codelco
President of BHP Billiton Base Metals division
Executive Director of Vale do Rio Doce
Chief Executive Officer of Compaa Minera Doa Ins de Collahuasi S.C.M.
Chief Executive Officer of Empresa Minera de Mantos Blancos S.A.
Various senior positions within the Anglo American group in Chile and
withtheRio Tinto group in Brazil
Chief Financial Officer of Codelco

Various positions at BHP Billiton, including President of Pampa Norte
(SpenceandCerro Colorado), Vice President Operations and Chief Financial
Officer of the Base Metals division
Over 15 years of international experience with Shell, in Chile, the United Kingdom,
Argentina and the United States
Other information:
Named 2010 Copper Man of the Year by the Copper Club, New York, and received
a gold medal award from the Chilean Institute of Engineers in 2013 in recognition
ofhis contribution to the development of engineering in Chile. Mr Hernndez
isalsoVice President of SONAMI, the Chilean Mining Society.
3 Alfredo Atucha
BD
Vice President of Finance and Administration and CFO

Accountant and economist with over 30 years of financial experience in the mining,
metals, energy and FMCG sectors.
Previous roles:
10 years service at BHP Billiton as Vice President of Finance for
MineraEscondida and Senior Manager of Base Metals Major Projects
Finance and Administration Manager at Chilquinta Energa
(part of Sempra Energy and PSG Group)
CFO at Reckitt Benckiser in Spain, Brazil and Chile
Tax Planning and Treasury at British American Tobacco
Antofagasta plc 77
OTHER INFORMATION
Group CEO
Chairman
1 Diego Hernndez
OVERVIEW

Leadership
Executive Committee
4 Patricio Enei
7 Ana Mara Rabagliati
Vice President of Legal
Vice President of Human Resources
Lawyer with over 20 years experience in mining, including roles at some

ofthelargest international copper companies operating in Chile.
Human resources specialist with more than 25 years experience in international

companies across a range of sectors, including financial services, industrials and
oiland gas.
Previous roles:
Previous roles:
General Counsel at Codelco

Corporate Affairs Manager of Minera Escondida
Senior Lawyer at BHP Billiton in Chile
Chief Legal Counsel at Minera Doa Ins de Collahuasi
Lawyer at the Instituto de Normalizacin Previsional and in private practice
5 Andrnico Luksic L.
Corporate Human Resources Manager at Masisa

Country Human Resources Vice President at Citigroup
Human Resources Manager at the Lafarge Group in Chile
Various positions across several divisions and areas at Shell, including
HumanResources Manager at the Lubricants Business of Shell Oil Latin America
BD
8 Gonzalo Snchez
Vice President of Development
Vice President of Sales
Business administrator with broad mining experience in sales, exploration,

development and general management.
Civil engineer with over 25 years experience in the marketing

and hedging of metals.
Previous roles:
Previous roles:
Corporate Manager at Antofagasta Minerals

Director, Antofagasta Minerals Toronto Office
Various positions at Banco de Chile
6 Hernn Menares
Deputy Commercial Director, Antofagasta Minerals

Copper sales at Codelco
OP
9 Francisco Veloso
Vice President of Operations
Vice President of Corporate Affairs and Sustainability
Civil mining engineer and mineral economist, with 30 years experience

inthemining and metals sectors.
Lawyer with over 20 years experience with Antofagasta Minerals,

including oversight of critical phases of development at Los Pelambres.
Previous roles:
Previous roles:
Project Development Manager for the Centinela District

Operational and business planning roles at Codelco
Various positions at Compaa Minera del Pacfico and Compaa Minera
Huasco S.A.
Vice President of Legal and Corporate Affairs at Antofagasta Minerals

Vice President of Human Resources at Antofagasta Minerals
General Counsel at Los Pelambres
Legal Manager at VTR
Chief lawyer at Michilla
or full biographies of the management team visit:
F
www.antofagasta.co.uk/about-us/leadership/senior-management/

Effectiveness
OVERVIEW
Board composition and roles

Chairman
Jean-Paul Luksic
Non-Executive Chairman.
ore information is provided in
M
theBoard biographies on pages
74to76.
Leads the Board and ensures its effectiveness in all aspects of its duties.
Promotes the highest standards of integrity, probity and corporate governance.
Sets the agenda for Board meetings in consultation with the Secretary to the Board,
other Directors and members of senior management.
Promotes a culture of openness and debate within the Board by facilitating the effective
contribution of all Directors.
Oversees Director development, induction, performance evaluation and relations
with shareholders.
STRATEGIC REPORT
Chairs meetings and ensures that there is adequate time available for discussion
of all agenda items with a focus on strategic, rather than routine, issues.
Senior Independent Director

William Hayes
The Board is satisfied as to

his independence.
Where necessary, acts as an intermediary between the Chairman and the other
members of the Board or Group CEO.
Acts as an additional point of contact for shareholders focusing on the Groups
governance and strategy, and gives shareholders a means of raising concerns
otherthan with the Chairman or senior management.
GOVERNANCE

M
74to76.
Provides a sounding board for the Chairman and supports the Chairman in the
delivery of his objectives as required.
Non-Executive Directors
These Directors do not meet one or more
of the independence criteria set out in the
UK Corporate Governance Code.
M
74to76.
Provide a range of outside perspectives to the Group and encourage robust debate
with, and challenge of, the Groups executive management.
Ensure that no individual or small group of individuals can dominate the Boards
decision-making.
Independent Non-Executive Directors

Tim Baker
Ollie Oliveira
Vivianne Blanlot
Jorge Bande
These Directors meet the independence

criteria set out in the UK Corporate
Governance Code and the Board is
satisfied as to their independence.
Provide a range of outside perspectives to the Group and encourage robust debate
with, and challenge of, the Groups executive management.
Ensure that no individual or small group of individuals can dominate the
Boardsdecision-making.
Board balance
As at the date of this report the Board has 11 Directors, comprising
a Non-Executive Chairman and ten Non-Executive Directors.
The Board considers five of these Non-Executive Directors to be
independent. The Board is satisfied that the balance of the Board,
in terms of background, gender and independence, limits the scope
for an individual or small group of individuals to dominate the Boards
decision-making. The Board considers that a board comprising
exclusively of NonExecutive Directors is valuable both in terms
of providing a range of outside perspectives to the Group and in
encouraging robust debate with, and challenge of, the Groups
executive management.
The Directors biographies provide details of their Committee
memberships as well as other principal directorships and external
roles, and demonstrate a detailed knowledge of the mining industry,
significant international business experience and a diversity of core
skills and experience. All Directors have confirmed that their other
commitments do not prevent them from devoting sufficient time
totheir role.
The Board carefully considered the independence of all Directors in

2015 and is satisfied that William Hayes continues to demonstrate
the qualities of independent character and judgement in carrying out
his role as a Non-Executive Director and Senior Independent Director,
notwithstanding that the ninth anniversary of his appointment was
in September 2015. In reaching this conclusion, the Board has taken
into account:
the entirely Non-Executive composition of the Board which is
designed to promote independent oversight of, and constructive
challenge of, management;
that there are no relationships or circumstances that are likely
toaffect, or could appear to affect, Mr Hayes judgement; and
that Mr Hayes character and the manner in which he performs
hisrole clearly demonstrate independent thought and judgement.
Mr Hayes retains his role as Senior Independent Director and will
offer himself for re-election at this years Annual General Meeting.
Antofagasta plc 79
OTHER INFORMATION

M
74to76.
No connection with the Group or any other Director which could be seen
tocompromise independence.
Ramn Jara
Hugo Dryland
Andrnico Luksic
Gonzalo Menndez
Juan Claro

Effectiveness
Board balance
Director tenure
Director location
D
Director independence
A
B
B
D
C
A Chile
A 13 years
A Chairman
B USA
B 47 years
B Independent
C Canada
C 810 years
C Non-Independent
D UK
D More than 10 years
Board meetings and activities

Board meeting attendance
Number attended
Maximum possible
10
10
8
10
9
10
10
10
3
9
10
10
10
10
10
10
10
10
10
10
10
10
Jean-Paul Luksic
William Hayes
Gonzalo Menndez
Ramn Jara
Juan Claro
Hugo Dryland
Tim Baker
Ollie Oliveira
Andrnico Luksic
Vivianne Blanlot
Jorge Bande
Ten meetings were held during

the year.
Each Director withdrew from any
meeting when his or her own
position was being considered.
All Directors in office at the
time of the 2015 Annual General
Meeting attended that meeting.
2015 Board calendar
JAN
FEB
MAR
APR
MAY
AGM
1 The Board met twice in October 2015.
JUN
JUL
AUG
SEP
OCT 1
NOV
DEC
OVERVIEW
Board activities during the year

Strategy and management
held two stand-alone strategy days with particular focus

on projects, business development and exploration,
competitiveness and costs, human resources and talent
andstakeholder management
reviewed and monitored the implementation of strategy

and performance of each Executive Committee
members team during the year
oversaw the merger of the business development

and exploration areas into a single Vice Presidency
responsible for all development activities
established a Projects Committee
approved the Cost and Competitiveness Programme
which is designed to mitigate the earnings reduction
resulting from the drop in copper prices
GOVERNANCE
Internal controls and risk management
reviewed succession plans for all Directors and

members of senior management
Approval of material transactions
approved key steps in the Groups growth plans,

executing the acquisition of 100% of Duluth Metals
Limited and of 50% of Minera Zaldvar
oversaw the implementation of the new Group enterprise

resource planning (ERP) system
approved the divestment of the Groups water division,

Aguas de Antofagasta S.A., and the closure of Michilla
reviewed the impact on the Groups position of new tax

legislation adopted in Chile
approved the merger of wholly owned subsidiary,

CCMEncuentro, into Centinela resulting in the
contribution of Encuentro mining properties located
intheCentinela Mining District to Centinela
met with shareholders and proxy advisors to discuss

corporate governance issues
reviewed and updated Board policies
conducted an internal evaluation of the
Boards effectiveness
Financial and performance reporting
approved the Groups annual and half-year results

reviewed the Groups ongoing capital management
andapproved the final and interim dividends paid out
toshareholders during 2015
reviewed the Groups performance against KPIs,
including safety indicators
reviewed and monitored the Groups operational
andproject performance
approved the Groups 2016 budget, scorecard,
commercial and financial parameters, and base
caseanddevelopment case production scenarios
Antofagasta plc 81
OTHER INFORMATION
Governance and shareholder engagement
approved construction of a molybdenum plant and

the pre-feasibility study for a second concentrator
atMinera Centinela
oversaw a review of the Groups internal control and

riskmanagement systems and reported in accordance
with these systems
adopted revised disclosure procedures and share

dealing policies
STRATEGIC REPORT
reviewed in detail the Groups transport, energy and

water strategies, including initiatives such as the need
fora desalination plant at Los Pelambres
Board and senior management structure

Effectiveness
Information and professional development
All new Directors receive a thorough induction on joining the

Board. This typically includes briefings on the Groups operations
and projects, meetings with the Chairman, other Directors and
senior executives, briefings on the legal, regulatory and other
duties and requirements of a director of a UK-listed company
and visits to the Groups key operations.
The Company provides Directors with the necessary resources to

develop and update their knowledge and capabilities. In particular,
the Directors are regularly updated on the Groups business,
thecompetitive and regulatory environment in which it operates
and other changes affecting the Group as a whole. In 2015, this
included detailed presentations from management during the two
Board strategy sessions, presentations from external commercial
intelligence firms and briefings from external advisors on key changes
to the regulatory and legal environment impacting the Group.
The Directors based outside Chile visit the country regularly to
attend Board meetings and for other meetings with management.
The Directors based outside the UK also regularly visit this country,
normally at least once a year to attend the Companys Annual General
Meeting, which is held in London.
The Board and its Committees receive an analysis of the matters
for consideration in advance of each Board or Committee meeting.
They also receive regular reports including analysis of key metrics
in respect of operational, financial, environmental and social
performance, as well as key developments in the Groups exploration
and business development activities, information on the commodity
markets, the Groups talent management activities and analysis of the
Groups financial investments. The standing topics to be covered in
Board meetings are agreed at the beginning of the year. The standing
topics to be considered at the planned meetings in 2016 are set out
opposite. Pre-reading materials are sent to Board and Committee
members a week in advance and the Board and each Committee
maintains an action list that is reviewed at the beginning of each
meeting to ensure that the Boards enquiries are clearly identified
andresponded to.
All Directors have access to management and to such further
information as is needed to carry out their duties and responsibilities
fully and effectively. Relevant management present to the Board
and its Committees on the operational or development matters
under consideration, allowing close interaction between the Board
members and a wide range of executive management.
All Directors are entitled to seek independent professional advice
concerning the affairs of the Group at the Companys expense.
The Company has appropriate insurance in place to cover the
Directors against legal action against them.
Information flow at Board meetings
Chairman agrees
the meeting agenda
Board papers are circulated

in advance of meetings
Board meeting
Action list prepared,

monitored and updated
Key actions achieved
OVERVIEW
STRATEGIC REPORT
JAN
Topics
MAR
APR
GOVERNANCE
2016 Board calendar
MAY
Interim 2015 Full-Year Results
Interim Q1 Results
Mining Operations Base Case
2015 Performance
Scorecard Results
Risk Management Update
Projects Strategy
Exploration Strategy
Human Resources Strategy
Sustainability Strategy
Resources and Reserves
Competitiveness and
Costs Programme 2016
Sustainability Report
Safety and Health Strategy
Compliance Report
Insurance Strategy
Legal Strategy
AGM Agenda
JUN
Topics
Group Strategy
AUG
OCT
NOV
Interim Q3 Results
2017 Budgets
Half-Year Report
Energy Strategy
2017 Performance Scorecard
2016 Sales Strategy
2017 Board Calendar and

Agenda Topics
Conflicts of Interest Review
Commercial and
Financial Parameters
Human Resources Update
Financing Strategy
Sulphuric Acid Strategy

Compliance Report
Talent/Succession Plans
Case Study: Information and Professional Development
ore information:
M
www.antofagasta.co.uk
It is essential for the Board continually to monitor

and understand copper market fundamentals.
In September 2015, the Board and senior executives
were briefed by external commercial intelligence firms
on the condition of the copper market which included
an in-depth analysis of supply and consumption
expectations and variables impacting on costs.
These sessions were held between the Board strategy

sessions and played an important role in focusing
the discussion topics at the strategy session held
in November.
Antofagasta plc 83
OTHER INFORMATION
Interim Q2 Results
Interim 2015 Q4 Results

Effectiveness
During 2015, the Company Secretary and the Secretary to the

Board worked with the Nomination and Governance Committee
and the Board to implement the remaining recommendations
made by Independent Audit Limited in its externally facilitated
evaluation oftheBoard in 2013 with specific focus on the areas
forimprovements that were highlighted in the 2014 internal review.
In particular, steps were taken:
to restructure the Boards agenda to enhance debate and facilitate
constructive discussion where decision-making was required
bythe Board;
to strengthen the Boards focus on strategic issues by prioritising

strategic decisions in the Boards agenda and by setting aside
twoseparate sessions outside the Boardroom to focus only
on strategy;
to establish a Projects Committee to work with management
onthe content and depth of project reviews; and
to include succession planning and metrics relating to development
plans and goals in the Human Resources Strategy and updates
which are reviewed by the Board semi-annually.
2015 Internal evaluation
2016 External evaluation
The Secretary to the Board also performed a separate internal

evaluation of the performance of the Board and itsCommittees
during the year. This was facilitated through a structured
questionnaire completed by Directors. A summary of the results
ofthe evaluation is as follows.
Independent Audit Limited will again conduct an externally facilitated

evaluation of the effectiveness of the Board and its Committees
in 2016. The purpose of this review will be to review progress in
closing the gaps that were identified in the 2013 review, evaluate
how the Group has responded to changes in the UK Corporate
Governance Code, analyse the Companys response to the new FRC
guidance onInternal Control and Risk Management and to compare
the way the Board and its Committees operate versus other large
publiclylisted companies in the UK.
Strengths:
understanding of roles and responsibilities and corporate
governance responsibilities;
the Boards open and respectful work environment;
the Boards leadership in values, ethics, sustainability
and diversity;
This is being conducted in two phases: an initial stage in January

hasassessed positively the progress against the 2013 action plan;
atthe end of the year a follow-up will assess the further development
of the Boards work during 2016.
the quality of Board documents including action lists and

minutes;and
Performance Evaluation Cycle: Overview
technically strong, committed and productive Board Committees.
2013
2014 and 2015
2016
External
evaluation
completed by
Independent
Audit Limited
Implementation of 2013
recommendations facilitated by
the Company Secretary and the
Secretary to the Board
External evaluation
commenced by
Independent
Audit Limited
inJanuary 2016
Areas where improvement has been made:

focus on strategy;
agenda ownership and decision-making;
risk management;
Board policies; and
project evaluation, reviews, approvals, stewardship and learnings.
Opportunities for further improvement:
the need to visit Operating Companies;
learning from market and peers initiatives;
improving time management during sessions;
striking an appropriate balance between mining and
transportdivision reporting;
further strengthening the focus on Board succession planning,
training and people issues;and
continuing to consider strategic opportunities for overseas growth.
During the year, led by the Senior Independent Director,
theNonExecutive Directors met without the Chairman present
andevaluated the Chairmans performance. The Senior Independent
Director and the Secretary to the Board subsequently met with the
Chairman to provide feedback. The Chairman used these comments
further to develop the effective operation of the Board.
Internal reviews to identify areas

and opportunities for improvement
in the implementation of the
recommendations made following
the external review
Annual evaluation of the Chairman
by the Non-Executive Directors, led
by the Senior Independent Director

Accountability
Board Committees
OVERVIEW
William Hayes
Chairman of the
Audit and
Risk Committee
STRATEGIC REPORT
R
ead more on pages 86 to 89.
Jean-Paul Luksic
Chairman of the Nomination
and Governance Committee
Nomination and
GOVERNANCE
R
Sustainability
and Stakeholder
Ramn Jara
Chairman of the
Sustainability and Stakeholder
R
ead more on pages 93 and 94.
OTHER INFORMATION
Ollie Oliveira
Chairman of the
ProjectsCommittee
Projects Committee
R
ead more on pages 95 and 96.
Tim Baker
Chairman of the
Remuneration and
TalentManagement
Committee
R
Antofagasta plc 85

Accountability
In a period of challenging economic

conditions,strong internal control and
highquality reporting are more important
than ever. Accordingly, we have continued
to focus onensuring that the Group benefits
from arobust and independent external audit
process, and strong internal riskmanagement.
Membership and meeting attendance

William Hayes (Chairman)
Ollie Oliveira
Jorge Bande
Number
attended
Maximum
possible
4
4
4
4
4
4
Key activities in 2015
Monitored the transition to PwC as the Groups new external

auditor, following the tender process conducted during 2014,
and reviewed its independence and effectiveness.
Reviewed relevant aspects of the development of the Groups
new Enterprise Resource Planning (ERP) system (which has
been implemented from 1 January 2016 onwards), including
Internal Audits reviews over the design and implementation
ofthe system.
Reviewed the Groups annual and half-year results, including
the significant accounting issues relevant to those results.
Reviewed the activities and key findings of the Companys
Internal Audit function during the year, and reviewed and
approved the 2016 Internal Audit work plan.
Reviewed the effectiveness of the risk management function
and the Groups system of internal control, including reviews
ofthe Groups principal risks and how those risks are managed
or mitigated.
Reviewed updates from the General Managers of the
Groups operations in relation to their specific key risks
andcontrol activities.
Following the appointment of PwC as the Groups new auditor, we

have closely monitored the transition process as it has undertaken
its first years audit of the Groups results. Over the course of the
year we have reviewed the planning undertaken by PwC and the
Groups management, and the ongoing execution of those plans.
As aconsequence, Im pleased to say that we have been able to
achieve a smooth and effective transition. On a personal level I
have been focused on building a strong working relationship with
JasonBurkitt, the Groups new lead audit partner.
In terms of risk management, the Committee strongly believes in the
benefit of direct interaction between the Committee and the Groups
operations. Accordingly, each of the General Managers of the Groups
operations reports directly to the Committee at least once a year,
updating the Committee on the trends in their operations key risks,
and any significant materialised risks. This is important both in terms
of the Committee maintaining a close understanding of how the
Groups risk management processes are really working in practice,
and also in providing an opportunity for the Committee to directly
emphasise the importance of strong controls and risk management
being embedded in the core day-to-day activities of allof the
Groups operations.
William Hayes
Chairman of the Audit and Risk Committee
The purpose of the Audit and Risk Committee is to assist the Board in
meeting its responsibilities relating to financial reporting and control.
The Committee is responsible for overseeing the Groups relationship
with the external auditor and monitoring the effectiveness of the
Groups Internal Audit and risk management functions.
Audit and Risk Committee membership
Financial reporting
Fair, balanced and understandable

At the request of the Board, the Committee considered the 2015
Annual Report and Financial Statements and concluded that, taken
asa whole, this was fair, balanced and understandable, and provided
the necessary information to allow shareholders to assess the
Groups position and performance, business model and strategy.
The Committee reviewed the key factors relevant to the

determination that the Group exercises joint control over Zaldvar,
andthe key assumptions and results of the fair value assessment.
3. Mine closure provisions
Consideration of the appropriateness of the provision balances in
respect of future mine closure costs. The Groups closure provisions
are detailed in Note 30 to the financial statements.
The Committee reviews significant movements in the closure
provision balances, and key assumptions used in the calculation
ofthe provisions.
4. Capitalisation of costs
Consideration of the appropriateness of the capitalisation of property,
plant and equipment, in particular in respect of significant project
expenditure. Details of additions to property, plant and equipment
areset out in Note 14 to the financial statements.
The Committee reviews significant additional capitalised amounts,
in particular in respect of major project expenditure, including
consideration of the commercial viability of the relevant projects.
External audit
The Committee is responsible for overseeing the Groups relationship
with the external auditor. The Committee reviews and approves
the scope of the external audit and the external auditors terms of
engagement and fees. The Committee monitors the effectiveness
of the external audit process and is responsible for ensuring the
independence of the external auditor. The Committee is also
responsible for making recommendations to the Board for the
appointment, re-appointment or removal of the external auditor.
The Committee meets with the external auditor without
management present at least once a year.
Antofagasta plc 87
OTHER INFORMATION
The key internal controls over the financial reporting process include
appropriate segregation of duties, ensuring adequate resources,
technical expertise and experience in the operations and corporate
centres accounting teams, application of consistent accounting
policies as set out in the Groups detailed accounting policies
manual, robust review processes over the results, balances and
key accounting judgements both within the individual operations
and also by the corporate centre and effective financial reporting
systems. A key area of focus for the Group during 2015 has been the
completion of the development of a new unified ERP system for the
Group, which has been implemented from 1 January 2016 onwards.
2. Zaldvar acquisition
Review of the accounting for the Groups acquisition of its 50% stake
in Minera Zaldvar SpA (Zaldvar), including the treatment of that
investment as a joint venture, and the determination of the fair values
of the assets and liabilities acquired.
The Committee monitors the integrity of the Groups financial

reporting. It reviews whether the Groups accounting policies are
appropriate, and whether managements estimates and judgements
applied in the financial statements are reasonable. The Committee
reviews the year end financial statements and half-yearly financial
report, as well as other relevant external financial reports.
The Committee also reviews the going concern basis adopted in the
year end financial statements and half-yearly financial report, prior
toits endorsement by the Board.
The Committee reviews the key assumptions used in the

impairment reviews, including copper price forecasts and other
relevant assumptions including future cost and production levels.
The Committee reviews the disclosures in respect of the impairment
reviews, including the sensitivities of the valuations to changes in
key assumptions.
GOVERNANCE
The members of the Committee and their attendance at meetings

of the Committee during the year are shown in the table opposite.
Biographical details of the members of the Committee, including
relevant qualifications and experience, are set out on pages 74 to
76. All of the Committee members are considered by the Board
to be independent Non-Executive Directors. William Hayes and
Ollie Oliveira are considered to have recent and relevant financial
experience. The Committee received briefings during the year on
developments in financial reporting requirements and other relevant
regulatory changes.
1. Carrying value of assets

Following the significant deterioration in the commodity price
environment in late 2015 and early 2016, reviews were undertaken
of the carrying value of the Groups assets, in particular in respect of
Antucoya and Centinela. These reviews indicated the carrying value
of those assets was fully recoverable, and accordingly no impairment
was appropriate. Details of the impairment reviews are set out in
Note 15 to the financial statements.
STRATEGIC REPORT
The Committee meets at least three times a year, with the external
auditors in attendance. There is a rolling agenda that covers regular
matters such as the review of the year end financial statements and
half-yearly financial report, planning for the year end reporting and
external audit processes, monitoring the Groups tax strategy and
processes, reviewing the Internal Audit work plan and reports from
the risk management function, as well as providing time for ad-hoc
matters requiring the Committees consideration. The Committee
held four meetings during 2015.
Significant issues in relation to the financial statements

considered by the Committee in 2015
OVERVIEW
Role and responsibilities of the Audit and Risk Committee

Accountability
Audit tender process
Effectiveness of the external audit process
A tender process was conducted during 2014 and resulted

in the Committee recommending to the Board that
PricewaterhouseCoopers LLP (PwC) be recommended to
shareholders for appointment as the Groups external auditor
for the 2015 financial year onwards, replacing Deloitte LLP.
Shareholders formally appointed PwC as the Groups external auditor
at the 2015 Annual General Meeting in May 2015.
The Committee has reviewed the effectiveness of the external

audit process during the year, including consideration of the
following factors:
Accordingly, 2015 is PwCs first year as the Groups external auditor.

In line with relevant regulatory guidance, the Committee expects to
generally undertake a tender process in respect of the external audit
at least every ten years.
The Statutory Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive Tender
Processesand Audit Committee Responsibilities) Order
2014statement of compliance
The Company confirms that it complied with the provisions of the
Competition and Markets Authoritys Order for the financial year
under review.
Independence and objectivity of the external auditor
The Committee monitors the external auditors independence
and objectivity.
The Company has a policy in place that aims to safeguard the
independence and objectivity of the external auditor. This includes
measures in respect of the potential employment of former auditors,
the types of non-audit services that the external auditor may and
may not provide to the Group, and the approval process in respect
of permitted non-audit services. Non-audit services that the external
auditor is not permitted to provide under the policy include Internal
Audit outsourcing, valuation services that would be used for financial
accounting purposes, preparation of the Groups accounting records
or financial statements, and financial information systems design and
implementation. Certain permitted non-audit services always require
prior approval by the Committee, whereas certain other services
require prior approval by the Committee when the related fees are
above specified levels (currently $50,000 for a single engagement
or a cumulative annual amount of $400,000). In addition to this
approval process for specific non-audit services, the Audit and Risk
Committee monitors the total level of non-audit services to ensure
that neither the objectivity nor the independence of the external
auditor is put at risk.
A breakdown of the audit and non-audit fees is disclosed in Note 6
to the financial statements. The Companys external auditor for the
2015 financial year, PwC, has provided non-audit services (excluding
audit-related services) which amounted to $0.2 million or 12% of
the fee for audit and audit-related services. This mainly related to
environmental consulting services. In general, where the external
auditor is selected to provide non-audit services it is because they
areconsidered to have specific expertise or experience in the
relevantarea which means they are the most suitable provider of
those services. The Committee has reviewed the level of these
services in the course of the year and is confident that the objectivity
and independence of the auditor is not impaired by reason of such
non-audit work.
The external auditor also provides a report to the Committee at
least once a year, setting out its firms policies and procedures
formaintaining its independence.
The Committee considers that PwC remained independent
andobjective throughout 2015.
the appropriateness of the proposed audit plan, the significant risk

areas and areas of focus, and the effective performance of the audit
in line with the agreed plan;
the technical skills and industry experience of the audit engagement
partner and the wider audit team;
the quality of the external auditors reporting to the Committee;
the effectiveness of the co-ordination between the UK and Chilean
audit teams;
the effectiveness of the interaction and relationship between the
Groups management and the external auditor;
feedback from management, including questionnaires completed
by the operations finance teams, in respect of the effectiveness
ofthe audit processes for each business unit;
consideration of the auditors management letter and, in particular,
the view this provides of the auditors level of understanding and
insight into the Groups operations; and
review of reports from the external auditor detailing its firms
internal quality control procedures, as well as the auditors annual
transparency report.
Internal Audit
The Committee monitors and reviews the effectiveness of the
Groups Internal Audit function. The Head of Internal Audit reports
directly to the Committee and meets with the Committee without
management present during the course of the year.
The Head of Internal Audit presents to the Committee several times
during the year. The Committee reviews and approves Internal
Audits plan of work for the coming year, including the departments
budget, head count and other resources. Internal Audit then reports
to the Committee on the departments performance of its work
in comparison with the approved plan. Summaries of the audits
undertaken during the year are presented to the Committee, as
well as follow-up on managements response to Internal Audits
recommendations. All individual Internal Audit reports are distributed
to the Committee members once they have been finalised.
During 2014, an independent review of the effectiveness of the
Internal Audit function was undertaken by Independent Audit Limited.
The Audit Committee reviewed that the implementation of the
recommendations was completed as planned during 2015.
The Board has ultimate responsibility for overseeing the Groups key
risks, as well as for maintaining sound risk management and internal
control systems. The Groups system of internal control is designed
to manage rather than eliminate the risk of failure in order toachieve
business objectives, and can only provide reasonable and not
absolute assurance against material misstatement or loss.
Audit and Risk

Committee
Chairman reports to the
Board after each meeting
Supports the Board in
reviewing the effectiveness
of the Groups risk
management and internal
control systems
Whistleblowing
Reports presented
every quarter
General Managers
ofthe Operations
Present the operations
most significant risks at
least once a year
Risk Management
Function
Present developments
of the Groups risk
management processes
and Group-level strategic
risk at least twice
per year
Report on Groups Crime
Prevention Model in
accordance with Chilean
anti-corruption legislation
OTHER INFORMATION
As discussed in the Risk management section on page 33, the

Committee assists the Board with its assessment of the Groups
key risks and its review of the effectiveness of the risk management
process. The Chairman of the Committee reports to the Board
following each Committee meeting, allowing the Board to understand
and, if necessary, discuss the matters considered in detail by the
Committee. These processes have assisted the Board in carrying
out a robust assessment of the principal risks facing the Company,
including those that would threaten its business model, future
performance, solvency or liquidity, and to assess the acceptability
of the level of risks that arise from the Groups operations and
development activities. The Groups principal risks, along with details
of how those risks are managed or mitigated are set out in the Risk
management section of the Strategic Report on pages 32 to 38.
Appointment and
activities overseen
by the Audit and
Risk Committee
The Committee is also responsible for reviewing the Groups

whistleblowing arrangements, which enable staff and contractors
to raise concerns in confidence about possible improprieties or
non-compliance with the Groups Code of Ethics. The Committee
receives quarterly reports on whistleblowing incidents. It remains
satisfied that the procedures in place allow for the proportionate
and independent investigation of matters raised and for appropriate
follow-up action.
Crime Prevention
Officer
GOVERNANCE
The Committee ensures that appropriate compliance policies and

procedures are observed throughout the Group. The Committee is
responsible for making recommendations to the Board in respect
of the appointment of the Groups Crime Prevention Officer, and
generally monitors and oversees the performance of the Crime
Prevention Officers role. The Crime Prevention Officer is currently
the Vice President of Finance and Administration. The Committee
receives reports from the risk management function in respect of
theGroups Crime Prevention Model, in accordance with Chilean
anticorruption legislation.
Board
STRATEGIC REPORT
The Committee plays a key role in assisting the Board with its
responsibilities in respect of risk and related controls. The risk
management function presents to the Committee several times
during the year, and presentations include details of developments in
the Groups overall risk management processes and key Group-level
strategic risks. The General Managers of the Groups operations,
including the transport and water divisions (until the date of its
disposal), also present to the Committee, with each operation
typically presenting at least once a year. The presentations include
details of the operations most significant risks and related mitigating
controls, and any significant control issues that have arisen.
Risk management reporting process overview
OVERVIEW
Risk and compliance management and internal control
Each year the Board, with the support of the Committee, reviews
theeffectiveness of the Groups risk management and internal control
systems. The review covers all material controls, including financial,
operational and compliance controls. During 2015, a review of the
risk management and internal control systems was performed by the
Committee, with the Chairman of the Committee reporting back to
the Board on its findings. No significant failures or weaknesses were
identified as a result of this review.
Further information relating to the Groups risk and management
systems is given in the Risk management section of the Strategic
Report on pages 32 to 38.
Antofagasta plc 89

Accountability
We have a strong and committed Board of

Non-Executive Directors with a broad and
complementary set of skills and experiences.

Jean-Paul Luksic (Chairman)
William Hayes
Tim Baker
Number
attended
Maximum
possible
3
3
3
3
3
3
Oversaw implementation of the remaining recommendations

made in the 2013 externally facilitated Board evaluation
and areas of specific focus highlighted in the 2014
internal evaluation.
Reviewed and approved the scope of the Companys second
externally facilitated Board evaluation for 2016.
Reviewed the composition and balance of the Board and
its Committees, resulting in changes to the composition
of the Audit and Risk and Sustainability and Stakeholder
Management Committees.
Recommended the creation of a Projects Committee tothe
Board for approval.
Reviewed the Companys corporate governance arrangements
and recommended certain changes tothe Board for approval.
Reviewed Director independence, and succession plans for
the Board.
Recommended revised Board policies and procedures to the
Board for approval.
Recommended revised policies and procedures addressing
the Groups regulatory obligations in the UKto the Board
for approval.
Proactively engaged with shareholders on corporate
governance issues.
This year has seen relative stability at Board and committee level
following the appointments of two independent Non-Executive
Directors and a change to the composition of the committees in
2014. Our focus therefore has shifted from making appointments and
ensuring that new Directors or Committee members receive a full
induction, appropriate training and experience, to succession planning
for the medium term, both at Board and Senior Management level.
As noted in my introduction to the Corporate Governance Report, the
Committee will continue to monitor the composition of the Board and
its committees in 2016. This will ensure that they are appropriately
staffed and that we continue to benefit from shared knowledge and
experience as well as fresh ideas, so that we are in the best possible
position to secure long-term growth and profitability. The Committee
is also monitoring developments in connection with the FRCs recent
focus on UK Board Succession Planning.
The Board Committees are proactive and work hard to help the Board
to challenge management constructively and ensure that matters
that come to the Board for approval have been thoroughly analysed
and well thought-out. With the creation of the Projects Committee,
we have a broad and appropriate set of committees to ensure that
Board meetings include significant focus on strategic issues without
compromising the depth of knowledge required to support effective
decision-making.
Below Board level, Diego Hernndez has continued to work with
the CEO of Antofagasta Minerals, IvnArriagada, and the Executive
Committee to rigorously implement our strategy of:
strengthening the Groups position in a challenging environment;
optimising our business portfolio; and
maintaining our discipline, austerity and ability
toseize opportunities.
OVERVIEW
STRATEGIC REPORT
Jean-Paul Luksic
Chairman of the Nomination andGovernance Committee
The Nomination and Governance Committee is responsible for

leading the process of identifying suitable candidates to fill vacancies
on the Board and in Senior Management, for nominating such
candidates for the approval ofthe Board and for ensuring that
appointments are made on merit and against objective criteria.
The Committee is responsible for evaluating and overseeing the
balance of skills, knowledge and experience on the Board and its
Committees, reviewing theindependence of Directors from time
totime and overseeing succession plans for the Board.
The Committee is also responsible for overseeing the Boards
governance arrangements, monitoring trends, initiatives and
proposals in relation to governance matters, and reviewing the
Companys corporate governance framework at least annually and
recommending any changes to the Board.
The Committee meets as necessary and at least twice per year.
I touched on the impact of the Committees focus on corporate

governance in my introduction to the Corporate Governance Report;
evidence of the Groups progress can be seen below and throughout
the Annual Report.
Role and responsibilities of the Nomination and

GOVERNANCE
Since joining the Group in 2012 as CEO of the mining division,

Diego Hernndez has led significant changes in the mining Group.
These include restructuring the Executive Committee, as well as
reporting lines from the mining operations and internal control and
governance structures at the senior executive level. Following his
appointment as Group CEO in 2014, Diego has overseen the sale
of the Groups water business, a restructuring of the internal control
and governance structures within the railway business, and a further
consolidation and simplification of reporting lines across the Group.
Nomination and Governance Committeemembership
Board evaluations
As explained on page 84, an internal Board evaluation was
conducted during the year which demonstrated that significant
progress has been made in implementing all the recommendations
made following the 2013 external evaluation. The Committee
reviewed and approved the scope of the external evaluation for 2016.
Appointments to the Board
In making appointments to the Board, the Committee considers
the skills, experience and knowledge of the existing Directors
and identifies potential candidates who would best contribute to
maintaining a strong Board with broad and complementary skills and
experiences. The Committee assesses the candidates based on a
number of criteria, including relevant experience, skills, personality
type, whether they would contribute to a diverse Board composition
and whether they have sufficient time to devote to the role. Following
the changes to the Chairmans role and the appointment of two
new independent NonExecutive Directors in 2014, there were
nochanges to the Boards composition in 2015.
Antofagasta plc 91
OTHER INFORMATION

of the Committee during the year are shown in the table opposite.
relevant qualifications and experience, are set out on pages 74 to 76.
Except for the Chairman, all Committee members are considered by
the Board to be independent.

Accountability
Board induction and training
Succession planning
The Chairman is responsible for ensuring that any new Directors are
provided with a full induction on joining the Board and the Secretary
to the Board and the Company Secretary both assist the Chairman
with this process. During the recruitment process, the Committee
also advises potential candidates of the Companys values, business
culture and challenges, as well as expectations of time commitment
to meet both Board and committee objectives.
The Committee periodically reviews the composition of the Board

and its Committees. The Committee regularly discusses relevant
profiles for future appointments and when required, assists the Board
to identify appropriate candidates for appointment to ensure that the
Board remains balanced as regards skills, knowledge, experience
andindependence. The Committee reviewed succession plans
forallof the Directors, including Committee roles, in 2015.
Appointments to committees
Corporate governance
As noted above, the Committee periodically reviews the composition

of the committees and reviews and implements succession plans to
ensure that vacancies can be appropriately filled while preserving an
adequate balance of skills, knowledge, experience and independence.
The Committee is responsible for monitoring the Boards corporate

governance arrangements, reviewing the Companys corporate
governance framework at least annually and recommending changes
to the Board. During the year, the Committee reviewed and revised
a series of policies and procedures that apply to the Board, including
in relation to succession planning, market disclosure procedures and
share dealing.
During 2015, Tim Baker rotated off the Audit and Risk Committee and
joined the Sustainability and Stakeholder Management Committee.
There are now four Directors serving on the Sustainability and
Stakeholder Management Committee. As explained on pages 93
and 94, engaging with the Groups stakeholders to resolve long-term
issues is a key objective for the Group and Mr Bakers appointment
to the Sustainability and Stakeholder Management Committee is
intended to further support the Group in achieving this objective.
The Committee also recommended the creation of the Projects
Committee during the year, comprising of Ollie Oliveira as
Chairman and Jorge Bande and Tim Baker as members. One of the
recommendations from the 2013 external Board evaluation was for
the Board to focus greater attention on projectreviews, approvals and
execution. The Projects Committee has been tasked with assisting
the Board with this responsibility. As explained on pages 74 to 76,
allthree Directors have significant mining experience and are well
placed to carry out the Projects Committees objectives.
Boardroom diversity
The Board is comprised of highly capable and committed individuals
with a diverse range of technical skills, backgrounds, expertise,
nationalities and perspectives.
The Board benefits from the diversity of personal attributes among
Board members. Diversity of views, attitudes, background and
gender is important to ensure that the Board is not composed
solelyof like-minded individuals. As part of its annual evaluation,
theBoard assesses its effectiveness in meeting its diversity goals.
The Board believes in the benefits of diversity on the Board, including
gender. The Board has the objective of continuing to have at least one
female Director and will take advantage of opportunities to increase
female representation while continuing to appoint Directors based
on merit.
As required, the Committee reviews and presents to the Board

any updates to committees terms of reference, the schedule
of matters reserved for the Board, and documents outlining the
specific responsibilities of the Chairman, the Group CEO and the
SeniorIndependent Director. These documents were thoroughly
reviewed in 2014 and revised versions were adopted in March 2015.
It is expected that some further refinements will be reviewed by the
Committee during 2016.
Re-election
In accordance with the UK Corporate Governance Code, all
Directors will stand for re-election at this years Annual General
Meeting on 18 May 2016. As is required under the Listing Rules,
independent Non-Executive Directors will be subject to a dual
votebyshareholders, which means that each resolution to re-elect
an independent Non-Executive Director must be approved by
both a majority vote of all shareholders and a majority vote of the
Companys independent shareholders. Each year the Committee
performs a thorough review of each Directors independence during
the year. Having taken into account the results of the performance
evaluationof the Board (see page 84), the Board is satisfied that
each of the Directors continues to be effective and demonstrates
commitment tohis or her role, and therefore recommends each
ofthem for re-election.

Accountability
Sustainability and Stakeholder Management Committee
7
7
7
7
3
7
3
7
The Group, with oversight from the Committee, has continued to

implement the Groups new community engagement model in
2015. The new model is based on promoting a wide engagement
process with the local communities and with the provinces four
municipalities, to jointly identify local challenges and opportunities.
This model recognises that the future development of Los Pelambres
and other areas within Los Pelambres zone of influence depends
oncommitted and sustained collaboration between the community,
the Government and the Group.
The Committee closely oversaw implementation of the engagement
model during the year with a focus on ensuring that all activities,
programmes and expenditures in the area were aligned. The new
model includes community consultation to agree on a portfolio
ofprojects, in line with the public policy for the area, which will be
designed and executed with public support. The Committee believes
that this community engagement model can be replicated, with
appropriate modifications to the local environment, at our operations
in the north of Chile and will continue to oversee this development
in 2016.
Antofagasta plc 93
OTHER INFORMATION
Reviewed personal accident and environmental incident reports

and followed up on committed actions to prevent recurrence.
Oversaw the development and implementation of a new
community engagement programme at Los Pelambres.
Evaluated environmental risks and mitigating actions,
including water availability and possible initiatives such as
theconstruction of a desalination plant for Los Pelambres.
Analysed operational response to the earthquake which
impacted Los Pelambres.
Reviewed Michillas plan to put the site on care and maintenance.
Reviewed sustainability aspects of development projects at
Centinela, Los Pelambres and Alto Maipo including processes
to obtain the required Environmental Impact Studies and
Environmental Impact Declarations.
Reviewed the mining divisions communications strategy
andco-ordination with non-mining businesses.
Evaluated expenditure related to social plans.
Reviewed environmental compliance at Los Pelambres
and the Antofagasta port.
Oversaw the process by which Antofagasta Minerals
is fulfilling its commitments made with the ICMM.
Reviewed and approved the 2015 Antofagasta Minerals
Sustainability Report.
Earlier in the year, some members of one of the communities near

Los Pelambres staged demonstrations and blocked access along the
road leading to the mine. Through constructive dialogue this conflict
was resolved.
Maximum
possible
GOVERNANCE
Ramn Jara (Chairman)

Juan Claro
Tim Baker (joined the Committee
on18 August 2015)
Vivianne Blanlot
Number
attended
STRATEGIC REPORT
We were deeply saddened by the tragic fatal accident at Michilla

in the first half of the year involving Sr Sergio Bruna Corts,
anemployee of one of our contractors. This fatality followed
theimplementation of our new safety and health model in 2014,
whichhas as one of its central aims stopping all fatalities in the
Group. The Group remains committed to that aim and the Committee
thoroughly reviewed the results of the independent investigation
intothis incident and the lessons learned, and these were extensively
communicated throughout the Group. The Committee regularly
reviews Group performance against the safety and health model
toensure that the objectives of the model are being achieved.
OVERVIEW
The Committee was particularly active in 2015

as it oversaw the implementation of major steps
to strengthen the Groups safety, environmental
and social performance, and evaluated the
Groups performance and strategies in these
areas in light of the challenges that we faced
during the year.

Accountability
Sustainability and Stakeholder Management Committee
The discussion forums that have been set up as part of the new
engagement model were particularly helpful for co-ordinating the
assistance efforts following the extremely powerful September
earthquake. This measured 8.4 on the Richter scale at the
epicentre which was less than 100 km from the Mauro tailings
dam. The earthquake did not damage the Mauro tailings dam and
representatives from the local community and independent experts
were invited to verify the structural integrity of the dam immediately
following the earthquake.
The Committee continued to oversee the work being done by the
Group to meet its commitments as a member of the International
Council on Mining and Metals (ICMM), which included reviewing
revised mine closure guidelines and procedures. Michilla is the
Groups only underground mine and over the course of the year
Role and responsibilities of the Sustainability

andStakeholderManagement Committee
The Board has ultimate responsibility for sustainability.
The Committee assists the Board in the stewardship of the Groups
social responsibility programmes and makes recommendations to
the Board to ensure that ethical, safety and health, environmental,
social and community considerations are taken into account in the
Boards deliberations.
The Committee provides guidance to the Group in relation to
sustainability matters generally, reviewing and updating the
Groups framework of policies and strategies, including safety and
health, environmental, climate change, human rights, community
and other stakeholder issues, and monitoring and reviewing the
Groups performance in respect of sustainability matters, indicators
and targets. When necessary, the Committee escalates matters
ofconcern to the Board.
or details on the Groups sustainability performance in 2015, see
F
theManaging a sustainable business section of the Strategic Report
onpages53to 63.
the Committee oversaw the successful process of putting the

mine on care and maintenance. There was a special focus on
safety, environmental and social aspects of the closure as well as
on the implementation of the stakeholder management plan with
employees, authorities and the local communities.
2016 will be another important year for the Group to ensure that
itmaintains its social licence to operate and continues to improve
itsperformance against sustainability indicators.
Ramn Jara
Chairman of the Sustainability and
Stakeholder Management Committee
Community relations
The Committee is responsible for reviewing the Groups community
engagement strategies and in 2015, the Committee reviewed
progress on the implementation of a new community relations
programme at Los Pelambres, working with the community and
theGovernment to create a shared vision of social andenvironmental
priorities and corresponding projects to be developed over the
coming years.
Consultation, commitment to regional development and responding
to complaints are fundamental components of this strategy, as
explained in more detail in the Managing a sustainable business
section of the Strategic Report onpages53 to 63.
Environment
As part of the Committees responsibilities to make
recommendations for developing and updating policies and
standards, the Committee continued to oversee the work being
done by the Group to meet its commitments as a member of the
ICMM following its acceptance as a member in 2014. This included
approving the development of:

CommitteeMembership
a climate change strategy to determine a feasible goal on reduction

of greenhouse gas emissions;

of the Committee during the year are shown in the table on page
93. Biographical details of the members of the Committee, including
qualifications and experience, are set out on pages 74 to 76.
a biodiversity strategy, including a baseline for future projects and

abiodiversity standard; and
Safety and health

A core responsibility of the Committee is to monitor and report on the
implementation of the Group safety and health model, to investigate
any negative performance and to make recommendations to the
Board. Details of the Groups safety and health model are set out in
the Managing a sustainable business section of the Strategic Report
onpages 53 to 63.
The Groups objective is to achieve zero fatalities for employees and
contractors and the Committee will continue actively to monitor the
Groups performance in 2016.
revised mine closure guidelines and procedures.

These will be ready for review in 2016. The Committee also reviewed
the preparation, submission and review of the Environmental Impact
Study for the Centinela Second Concentrator Project.
Further details are set out in the Managing a sustainable business section
ofthe Strategic Report onpages53 to 63.
he Antofagasta Minerals Sustainability Report provides further information
T
on its social and environmental performance and is available on the
Companys website at www.antofagasta.co.uk.

Accountability
Projects Committee
OVERVIEW
I am pleased to report that the new Projects

Committee, created by the Board in June 2015,
had a busy start with four full meetings during
the second half of the year.
STRATEGIC REPORT
Ollie Oliveira (Chairman)

Jorge Bande
Tim Baker
Number
attended
Maximum
possible
4
4
4
4
4
4
The Committee adds value through:

early detection of issues, opportunities and challenges;
evaluation of projects planning and organisation;
formal evaluations at project closing; and
challenging the projects technical teams by offering different
pointsof view.
One of the first tasks undertaken by the Committee was to review
the Asset Delivery System (ADS) and its application as a standard
project development framework for the Groups mining projects.
The Committee highlighted that quality assurance reviews should
be undertaken at key stages of a project, requesting that the quality
assurance team reports its conclusions each time to the Committee.
Looking to 2016, the Committee will play a key role in recommending
improvements to the schedule of projects that are currently in the
execution phase to maximise cash availability, while ensuring that
projects continue to meet critical milestones. The Committee will
also carefully assess progress on the Los Pelambres Incremental
Expansion and Centinela Second Concentrator projects, particularly
with respect to critical path items and the preparation of the required
Environmental Impact Studies. The Committee will also evaluate
progress on the Twin Metals project and will assess Minera Zaldvars
projects, as it continues to learn more about the latest addition to the
Groups operations portfolio.
Ollie Oliveira
Chairman of the Projects Committee
Antofagasta plc 95
OTHER INFORMATION
Reviewed the role, responsibilities and objectives

oftheCommittee and its terms of reference.
Reviewed the Asset Delivery System and its application
totheGroups mining projects.
Reviewed the Groups mining projects portfolio and
strategic drivers.
Reviewed the Antucoya projects commissioning progress,
challenges and actions taken.
Reviewed progress in relation to the Los Pelambres
Incremental Expansion.
Reviewed the Centinela Second Concentrator project.
Reviewed the Twin Metals project.
Reviewed Los Pelambres New Industrial Mining
Installations project.
It is important to clarify that the Committee is not responsible

for approving projects that is for the Board to decide. Its role
is to assist the Board by ensuring that all of the Groups projects
follow a standard, structured procedure with consistent analysis,
execution and evaluation practices. As part of its review process, the
Committee invites management to consider different perspectives,
ideas and improvements, with the aim of enhancing focused
discussion within the Board and ultimately, an increase in the
valueofthe Groups projects.
GOVERNANCE
The Committee adds an important level of governance and control

for the evaluation of the Groups projects, and will play a key role in
providing the Board with additional oversight of the Groups projects
portfolio, development proposals, milestones and performance
against key indicators.

Accountability
Projects Committee
Remuneration
Annual Statement by the
ChairmanoftheRemuneration
andTalentManagement Committee
Role and responsibilities of the Projects Committee

Antofagasta is committed to growing its copper mining business,
in Chile and beyond, in a sustainable and responsible manner that
ensures it retains its social licence to operate.
The Projects Committee assists the Board in reviewing all aspects
of projects that require Board approval. It highlights key matters for
Board consideration and makes recommendations to the Board.
The Board has ultimate responsibility for decisions relating to projects.
Projects Committee membership
of the Committee during the year are shown in the table on page
95. Biographical details of the members, including qualifications and
experience, are set out on pages 74 to 76.
Asset Delivery System
The Committee provides guidance to the Board from the early stages
of project planning and organisation on the application of policies,
strategies and the Groups standard implementation framework to
all projects. The use of the Groups ADS framework is an essential
component of this.
ADS uses processes and practices commonly used in the mining
industry for project management. It defines standards and common
criteria, considers governance by a steering committee, and includes
functional quality assurance reviews and risk management.
Projects in study/execution phase
The Committee is responsible for monitoring the Groups projects
portfolio at all stages of development and ensures their continued
alignment with the Companys strategic goals. The Committee
reviews project proposals against flat-price sensitivities, execution
milestones and key performance indicators, providing guidance when
there is evidence of a deviation in costs or schedule from the plans
approved by the Board.
In 2015, the Committee reviewed the Centinela Second Concentrator
projects pre-feasibility study results, quality assurance review, choice
of technology, risks and mitigation actions, residual risk and 2016
budget. The Committee recommended to the Board that the project
advance to the feasibility study phase. The Committee analysed the
planned 2016 cash expenditures in detail, to ensure that critical path
items and the Environmental Impact Study are adequately resourced.
The Committee also evaluated the Los Pelambres Incremental
Expansion project and confirmed that it should proceed in two
stages, with the first stage ensuring the sustainability of operations
through the construction of a desalination plant to supply current
andfuture water needs.
Project commissioning
The Committee also advises the Board on project transition from
development to operation and reviews project close-out reports,
including plans to share lessons learned. In 2015, the Committee
reviewed progress in the Antucoya Projects commissioning,
its milestones, successes, challenges and opportunities.
Special emphasis was placed on overseeing the resolution of the
dust issue in the crushing process, analysing dust measurements
in the camp site and confirming that they are within limits set
bythe authorities.
As a Committee, our objectives for 2016 are

the same as forthe rest of the Group tofocus
on the Groups strategic objectives, operational
performance and ability todeliver.
Remuneration at a glance
The remuneration information is structured as follows:
Annual Statement by the Chairmanofthe
Remuneration andTalentManagement Committee
96
98
99
Remuneration and Talent Management Committee
99
Statement of shareholder voting
100
Implementation of the Directors Remuneration Policy in 2015
100
Voluntary disclosures executive remuneration
102
Comparison of overall performance and remuneration
110
Relative change in remuneration
111
Relative importance of remuneration spend
111
I am pleased to introduce Antofagasta plcs Remuneration Report

forthe financial year to 31 December 2015.
We have not made any changes to the Directors Remuneration
Policy approved by shareholders at the 2014 AGM and include
a summary of the Remuneration Policy at the beginning of this
Remuneration Report.
This Remuneration Report has been prepared in accordance

with Schedule 8 of the Large and Medium-sized Companies and
Groups (Accounts and Reports) Regulations 2008 (as amended).
It also describes how the Board has applied the principles of good
governance as set out in the Corporate Governance Code.
Talent management and succession planning are essential to our

ability to ensure that the Group remains dynamic and adaptable and
that there is sufficient continuity of knowledge to enable the Group
to pursue its strategic objectives. 2015 was the second full year
following the implementation of the Groups new talent management
strategy and succession planning policy for key positions within the
Group as identified by the Committee.
As required under UK legislation, we expect to submit the Directors

Remuneration Policy to the 2017 AGM and will review its principles
and application during 2016.
Shareholders are invited to vote on the Remuneration Report and I
hope that you will continue to support the Groups pay arrangements.
OTHER INFORMATION
The Committee reviewed and, with the support of the Board,

finetuned the 2016 executive pay arrangements for the Group CEO
and the Executive Committee to ensure that measurements fairly
reflect performance and continue to be aligned with the Groups
strategic objectives and shareholders interests. Further information
isset out on pages 108 and 109.
As a Committee, our objectives for 2016 are the same as for the
rest of the Group to focus on the Groups strategic objectives,
operational performance and ability to deliver. Specific areas where
this will be applied in 2016 include the alignment of Zaldvars
remuneration practices with those of the rest of the Group, and
labour negotiations with four unions that represent employees and
contractors in the Groups transport division during the first quarter
of 2016.
As reported by the Chairman in his introduction to this years

Annual Report, 2015 has been a difficult year for the Group. As a
consequence, the performance score for the purposes of calculating
awards for the Group CEO and the Executive Committee under the
2015 Annual Bonus Plan was 95% (within a range from 90110%).
Fee levels for the Non-Executive Directors, which are reviewed

annually, have remained unchanged since 2012. Following the
creation of the Projects Committee during the year, the Committee
determined that additional fees for the Projects Committee
members should be the same as for the Remuneration and Talent
Management Committee and the Sustainability and Stakeholder
Management Committee.
GOVERNANCE
We feel it is important to embrace the broad governance

requirements of the UK while at the same time recognising that
ourGroup CEO and all of the members of the Executive Committee
are based in Chile. Consequently, we have continued voluntarily
toreport information on the remuneration and incentive pay design
for our Group CEO as if he was a member of the Board and have
alsocontinued to provide detailed information in relation to the
structure and components of the other Executive Committee
members remuneration.
Last year we reported that following the change in the role of the
Chairman in 2014 and the Committees review of his remuneration,
his total annual remuneration would be reduced by almost 70%.
This year was the first full year that the Chairman performed in a
nonexecutive role and the impact of this change on the Chairmans
pay arrangements can be seen in the single figure remuneration table
on page 101.
STRATEGIC REPORT
Our focus in 2015 was to ensure that the pay structures and
incentives for the Groups executives, who are currently outside
the scope of the Directors Remuneration Policy, encourage
teamwork and collaboration and appropriately incentivise and
stretchmanagement to achieve the Groups strategic objectives.
As part of the implementation of the Groups talent management

strategy in 2015, the Group launched a mentoring programme for
82high-potential employees, formalised individual development plans
and launched a trainee programme aimed at filling the talent pipeline
in the longer term. 62% of the participants in the 2015 trainee
programme were female. The Groups focus on talent management
and succession planning was supported by the performance criteria
that applied to the Group CEOs Recruitment Awards that vested
in2015, as set out on page 107.
OVERVIEW
Dear Shareholder,
Tim Baker
Chairman of the Remuneration
and Talent Management Committee
As part of this policy, the Committee oversaw processes during

2015 to agree on the key positions and to identify the existing
employees who are possible successors for these positions in the
future. Under the agreed succession planning policy, whenever a
keyposition becomes vacant, a replacement will first be sought from
within the Group, taking into account the succession plan previously
developed and agreed for that position.
During 2015, 68% of vacancies in key positions were filled by internal
candidates, in accordance with the succession planning policy.
Antofagasta plc 97

Remuneration
The Directors Remuneration Policy was approved by shareholders

at the AGM held on 21 May 2014 and took effect from that date.
The summary policy table below is provided for reference, and covers
elements of the policy that apply to all Directors. It does not formally
form part of the Remuneration Report and has not been separated
into elements relating to the role of Executive Chairman and NonExecutive Director following Jean-Paul Luksics re-designation as
Non-Executive Chairman in September 2014.
The Companys policy is to ensure that Directors are fairly rewarded

with regard to their responsibilities, and to consider comparable pay
levels and structures in the UK, Chile, and in the international mining
industry. Remuneration levels for Directors are reviewed annually in
comparison with companies of a similar nature, size and complexity
and take into account the specific responsibilities undertaken and
structure of the Board.
The full Remuneration Policy approved by shareholders at the 2014

AGM can be found in the Remuneration and Talent Management
section of the Companys website at www.antofagasta.co.uk/
investors/corporate-governance/board-committees.
Fees
Purpose
Operation
Maximum opportunity
To attract and retain highcalibre, experienced NonExecutive Directors by offering

globally competitive fee levels.
Fees are reviewed annually and the competitiveness of total fees is

assessed against companies of a similar nature, size and complexity.
In normal circumstances, the maximum annual

fee increase will be 7%. However, the Committee
has discretion to exceed this in exceptional
circumstances, for example:
Non-Executive Directors receive a base fee for services to Antofagasta

plcs Board, as well as additional fees for chairing or serving as a member
of any of the Boards committees.
if there is a sustained period of high inflation;
Separate base fees are paid for services to the Antofagasta Minerals Board if fees are out of line with the market; and/or
(all Non-Executive Directors are members of both boards), and for being
if fees for chairing or serving as a member of any
directors of subsidiary companies and joint venture companies within
of the Boards committees are out of line with
the Group.
the market.
Ramn Jara also receives a base fee for services provided to Antofagasta
Any increases will take into account the factors
Minerals (pursuant to a separate service contract).
described under operation and will not
Fee levels are denominated in US dollars. The Committee may determine
fee levels and/or pay fees in any other currency if deemed necessary.
be excessive.
Fee levels for additional roles within the Antofagasta

Group are based on the needs and time commitment
expected and may be determined and/or paid in a
combination of currencies, including US dollars and
Chilean pesos.
Fees will also be increased to take account of Chilean
inflation and may be reported as an increase or
decrease as a result of the exchange rate impact of
Chilean peso-denominated fees, given all amounts
inthis report are reported in US dollars.
Variable
Given the non-executive composition of the Board, there are no arrangements for Directors to acquire benefits through the acquisition of shares in the Company
remuneration orany of its subsidiary undertakings, to benefit through performance-related pay or to participate in long-term incentive schemes.
The Corporate Governance Code states that remuneration for Non-Executive Directors should not include share options or other performance-related elements.
Benefits
Pension
To provide appropriate benefits

required in the performance
of duties of the NonExecutive Directors.
Benefits include the provision of life, accident and health insurance.

The Committee retains the discretion to provide additional insurance
benefits in accordance with Company policy, should this be
deemed necessary.
In normal circumstances, the maximum value of

benefits will be $22,000. However, the Committee
has discretion to exceed this should the underlying
cost of providing the pre-existing benefits increase,
or if additional benefits are provided and are
deemed appropriate.
No Director receives pension contributions. The Corporate Governance Code considers that the participation by a Non-Executive Director in a companys pension
scheme could potentially affect the independence of that Non-Executive Director.
As Directors do not receive variable remuneration, there are no provisions in place to recover sums paid or withhold payments.
No Executive Directors were appointed, or served, on the Board in 2015.

Remuneration
OVERVIEW

Role and responsibilities of the Committee

Maximum
possible
6
6
6
6
6
6
The Committee is responsible for preparing the Companys

Remuneration Policy and assessing its relevance and for reviewing
the remuneration of any Executive Directors (although there
are currently none). The Committee also reviews and approves
the remuneration of both the Chairman and the Group CEO,
determining the performance-related elements of the Group
CEOs compensation.
Remuneration for members of the Executive Committee, including
awards granted under the LTIP and Annual Bonus Plan, and
performance targets for each plan, are reviewed by the Group
CEOand recommended to the Committee for approval.
Group performance is a significant component of the Annual Bonus
Plan and the Committee reviews targets for the Group and each of
its operations at the beginning of each year and recommends them
to the Board for approval.
The Committee works with remuneration consultants to review

Non-Executive Directors remuneration against relevant markets
and makes recommendations to the Board based on those results.
The remuneration of Non-Executive Directors is determined by the
Board as a whole and no Director participates in the determination
ofhis or her own remuneration.

of the Committee during the year are shown in the table above.
relevant qualifications and experience, are set out on pages 74 to 76.
All of the Committee members are considered by the Board to be
independent Non-Executive Directors.
Advisors to the Committee
During the year, the Committee re-appointed remuneration
consultants Towers Watson to continue to provide advice on matters
under its consideration. This included compensation benchmarking
and updates on legislative requirements and market practice.
Towers Watson is a widely recognised independent global
professional services firm that is signatory to, and adheres to,
theCode of Conduct for Remuneration Committee Consultants,
which can be found at www.remunerationconsultantsgroup.com.
The Committee is satisfied that the advice provided by Towers
Watson in 2015 was objective and independent, that no conflict of
interest arose as a result of these services and that Towers Watson
has no other connection with the Company.
Antofagasta plc 99
OTHER INFORMATION
Remuneration and Talent Management

Committeemembership
The Committee is also responsible for: monitoring the level and

structure of remuneration of the Executive Committee; reviewing
and approving performance-related compensation; reviewing
succession plans for the Executive Committee; reviewing any
major changes in compensation policies applied across the Groups
companies that have a significant long-term impact on labour costs;
and reviewing compensation and talent management strategies.
GOVERNANCE
Reviewed the structure of the Groups Annual Bonus and longterm incentive plans and recommended changes to the Board
for approval.
Reviewed LTIP eligibility and participants.
Oversaw the continued implementation of the Groups talent
management and succession planning policies.
Reviewed compensation across the Group to ensure that it
remains competitive, motivating and appropriately aligned with
the Groups performance and strategy.
Reviewed fees for members of the Projects Committee and
recommended them to the Board for approval.
Reviewed the Companys 2014 Remuneration Report prior
to its approval by the Board and subsequent approval by
shareholders at the 2015 AGM.
Reviewed Group performance and approved the vesting
ofawards in connection with LTIP awards granted in 2012.
Reviewed the 2016 Annual Bonus Plan and Group
performance against the 2015 Annual Bonus Plan.
Reviewed and approved the performance of the members of
the Executive Committee under the 2014 Annual Bonus Plan.
Reviewed the performance of the Group CEO for the purpose
of determining variable compensation under the 2014 Annual
Bonus Plan and Recruitment Award.
Reviewed the performance-related elements of the
Group CEOs compensation and approved the grant
ofStrategic Awards.
Reviewed Chairman, Director and Committee fees.
The Remuneration and Talent Management Committee is

responsible for ensuring that remuneration arrangements support
the Groups strategic objectives and enable the recruitment,
motivation, retention and development of talent within the
expectations of shareholders.
STRATEGIC REPORT
Tim Baker (Chairman)

William Hayes
Ollie Oliveira
Number
attended

Remuneration
Towers Watsons fees for this work were charged in accordance

withnormal billing practices and amounted to 60,140.
The Companys legal advisors, Clifford Chance LLP, were also
reappointed by the Committee to continue to provide advice on the
operation of the Groups LTIP and other legal issues during 2015.
The Committee Chairman has regular dialogue with advisers without
management present. For that reason and the reasons above, the
Committee considers that the advice that it receives is independent.
The Committee also received assistance from the Chairman, the
Group CEO, the Vice President of Human Resources and the
Company Secretary during 2015, none of whom participate in
discussions relating to setting their own remuneration.
Statement of shareholder voting

The table below displays the voting results on the Remuneration
Policy at the 2014 AGM and the Companys 2014 Remuneration
Report at the 2015 AGM:
Resolution to approve the Remuneration Policy
Votes for
965,357,216
91.8%
86,053,542
8.2%
88.7%
1,350,645
Votes against
Votes cast as a percentage of Issued Share Capital
Votes withheld
Resolution to approve the Companys 2014

Remuneration Report
Votes for
Votes against
Votes cast as a percentage of Issued Share Capital
Votes withheld
Non-Executive Directors
There has been no change to the level of Antofagasta plc Board
fees since 2012. The base Non-Executive Directors annual fee in
respect of the Board remained at $130,000. Given the core role
which Antofagasta Minerals plays in the management of the mining
operations and projects, and that Antofagasta Minerals represents
the large majority of the Groups business, all Antofagasta plc
Directors also served as Directors of the Antofagasta Minerals board.
The annual fee payable to Directors of Antofagasta Minerals remained
at $130,000 for members of the Board. Therefore, the combined
base fees payable to Non-Executive Directors of both Antofagasta plc
and Antofagasta Minerals amounted to $260,000 per annum.
The Board remains satisfied that the current fee levels and structure
are aligned with the Groups international peers and the Board is not
recommending any change this year, but will continue to review fee
levels from time to time, in accordance with the Remuneration Policy.
In addition to Board fees, Directors also receive fees for their
contributions to Board committees during the year. In 2015, with the
assistance of Towers Watson, the Committee reviewed committee fee
levels and it was decided that fees for the existing committees should
remain unchanged, as they have since 2012. Following the creation
of the Projects Committee in 2015, the Committee determined that
additional fees for the Projects Committee Chairman and members
should be the same as for the Remuneration and Talent Management
Committee and the Sustainability and Stakeholder Management
Committee. The table below summarises Antofagasta plc Board
Committee fees payable in 2015.
Role
1,049,760,797
99.1%
9,754,030
0.9%
89.4%
105,477
The considerable vote in favour of the Remuneration Policy and the

Companys 2014 Remuneration Report confirms the strong support
the Group has received from shareholders regarding the remuneration
arrangements and the performance of the Group overthe past year.
Additional
fees ($000)
Audit and Risk Committee Chairman

Audit and Risk Committee member
Nomination and Governance Committee Chairman
Nomination and Governance Committee member
Projects Committee Chairman
Projects Committee member
Remuneration and Talent Management Committee Chairman
Remuneration and Talent Management Committee member
Committee Chairman
Committee member
20
10
10
4
16
10
16
10
16
10
Implementation of the Directors

Remuneration Policy in 2015
The Remuneration Policy does not allow for the payment of variable
remuneration to the Chairman or Non-Executive Directors.
Chairman
Implementation of Remuneration Policy in 2015 and 2016
Mr Jean-Paul Luksic was appointed Executive Chairman in 2004 and

was redesignated as Non-Executive Chairman on 1 September 2014.
As a consequence of this, the contracts for services that Mr Luksic
had with the Antofagasta Railway Company plc and Antofagasta
Minerals were terminated with effect from that date and the fee
payable for the role of Chairman of the Board was reduced.
The Committee does not anticipate any changes to the

implementation of the Remuneration Policy during 2016.
From 6 October 2015, Mr Luksic resigned as a director of the Groups

transport division subsidiary and therefore, from that date, the only
fees payable to Mr Luksic are for his services as Chairman of the
Board, Chairman of the Nomination and Governance Committee
andChairman of the Antofagasta Minerals board.
Audited single figure remuneration table

The remuneration of the Directors and of Mr Diego Hernndez,
the Group CEO, for the year is set out below in US dollars.
Unless otherwise noted, amounts paid in Chilean pesos have been
translated at exchange rates at the time of payment.
Any additional fees payable for membership of subsidiary and joint
venture company boards are included within the amounts attributable
to the Directors within the table of Directors remuneration below.
As explained in the Remuneration Policy, Directors do not receive
pensions or performance-related pay and are not eligible to participate
in the LTIP.
Benefits5
Annual Bonus
Recruitment
Award9
LTIP6
2014
$000
2015
$000
2014
$000
1,115
2,610
342
313
879
270
260
294
288
356
340
963
279
260
294
273
0
260
173
260
270
200
23
275
4,566
10
6,018
5
28
321
321
220
220
621
621
158
158
734
734
2,534
7,100
688
6,706
2014
$000
2015
$000
2014
$000
2015
$000
2014
$000
1,098
2,590
18
20
342
313
876
270
260
294
288
356
340
960
279
260
294
273
260
173
260
270
200
275
4,545
10
5,995
21
847
5,392
303
6,298
11
32
20157
$000
20148
$000
Total
2015
$000
2015
$000
OVERVIEW
Salary/Fees
Chairman
Jean-Paul Luksic1
(non-executive since
1 September 2014)
Diego Hernndez4
(appointed
Group CEO
1 September 2014)
Grand total
2D
uring 2015, remuneration of $524,000 (2014 $573,000) for the provision of services by Ramn Jara was paid to Asesoras Ramn F Jara Ltda. This amount is included in the amounts
attributable to Ramn Jara of $876,000 (2014 $960,000). The benefits expense represents the provision of accident insurance to Ramn Jara.
3F
ees payable in respect of Ollie Oliveiras service as a Director are paid to Greengrove Capital LLP, a partnership in which Ollie Oliveira is a partner.
4D
iego Hernndez was appointed Group CEO on 1 September 2014 and amounts disclosed for 2014 relate to remuneration paid to him from that date, including base salary and benefits and
theprorata value of his annual bonus and LTIP Restricted Share Awards. No pension is payable to Diego Hernndez.
5A
ll Directors are covered by the Directors and Officers, Life and Travel insurance policies generally maintained by the Group. Diego Hernndez is covered by Life and Health insurance policies
generally maintained by the Group.
6A
s explained on page 104, awards granted pursuant to the LTIP are split between Restricted Share Awards and Performance Share Awards. Because Restricted Share Awards do not have
aperformance element, they are reported in the year that they vest.
7T
he 2015 amounts payable to Diego Hernndez under the LTIP relate to Restricted Share Awards and Performance Share Awards granted in 2013 and to Restricted Share Awards granted in 2012
and 2014. The performance period for Performance Share Awards granted in 2013 concluded on 31 December 2015 and these awards will vest on 12 April 2016. Because the Performance Share
Awards granted in 2013 have not yet vested, the amounts attributable to these awards have been estimated using the average closing share price for the last quarter of 2015 of 505.1p and the
average exchange rate for the year of $1.528/1.
8T
he 2014 amounts payable to Diego Hernndez under the LTIP relate to Restricted Share Awards and Performance Share Awards granted in 2012 and to Restricted Share Awards granted in 2013.
The amounts attributable to the Restricted Share Awards are the pro rata value of amounts paid following vesting in 2014 following his appointment as Group CEO. The performance period for
Performance Share Awards granted in 2012 concluded on 31 December 2014 and vested on 25 March 2015. This figure is the final amount paid for the entire performance period. In the 2014
Annual Report an estimate was used because the 2012 Performance Share Awards had not yet vested.
9D
iego Hernndez was granted an exceptional, long-term Recruitment Award on 22 November 2012. The Recruitment Award was in the form of conditional rights to receive a cash payment by
reference to the market value of 83,496 ordinary shares in the Company at vesting. The Recruitment Award was not granted over actual shares. Half of the Recruitment Award was subject both
to performance conditions, which were measured over a three-year period ending on 1 August 2015 (the three-year anniversary of the effective date of Diego Hernndezs appointment), and
to continued employment and the other half of the Recruitment Award was subject to continued employment. 100% of the Recruitment Award vested on 1 August 2015. The calculation of the
award was made using the share price as at 1 August 2015 of 577.5p and an exchange rate of $1.577/1. Details of the performance conditions attaching to the Recruitment Award and Diego
Hernndezs performance are explained in more detail on page 107.
Antofagasta plc 101
OTHER INFORMATION
1O
n 1 September 2014, Jean-Paul Luksic became Non-Executive Chairman of Antofagasta plc. From this date, his service agreements with Antofagasta Minerals S.A. and Antofagasta Railway
Company plc terminated and his annual fee as Chairman of the Antofagasta plc Board was reduced from $1,000,000 to $730,000. He continues to receive an annual fee of $260,000 as Chairman
of Antofagasta Minerals S.A., an annual fee of $10,000 as Chairman of the Nomination and Governance Committee and received directors fees as a director of Ferrocarril de Antofagasta a
Bolivia, the Chilean branch of Antofagasta Railway Company plc until 6 October 2015 and Aguas de Antofagasta S.A. until 3 June 2015, when the sale of the Groups water division completed.
The benefits expense represents the provision of life, accident and health insurance.
Total Board
Group CEO
(not on the Board)
GOVERNANCE
William Hayes
Gonzalo Menndez
Ramn Jara2
Juan Claro
Hugo Dryland
Tim Baker
Ollie Oliveira3
Nelson Pizarro
(resigned
1 September 2014)
Andrnico Luksic
Vivianne Blanlot
(appointed
27 March 2014)
Jorge Bande
(appointed
17 December 2014)
STRATEGIC REPORT
Non-Executive
Directors

Remuneration
Directors interests (Audited)
Remuneration principles
The Directors who held office at 31 December 2015 had the following
interests in the ordinary shares of the Company:
The remuneration arrangements in place for Diego Hernndez and

the Executive Committee are structured to align remuneration with
performance, the Groups strategic objectives and shareholders
interests. Diego Hernndez and each Executive Committee member
is eligible to receive a combination of base salary and other benefits,
as well as variable remuneration in the form of an annual cash bonus
and conditional cash awards based on the price of the ordinary shares
of the Company granted pursuant to the Groups LTIP.
Ordinary shares of 5p each
Jean-Paul Luksic1
Ramn Jara2
31 December
2015
1 January 2015
41,963,110
5,260
41,963,110
5,260
1 J ean-Paul Luksics interest relates to shares held by Aureberg Establishment, an entity that he
ultimately controls.
2R
amn Jaras interest relates to shares held by a close family member.
There have been no changes to the Directors interests in the shares

of the Company between 31 December 2015 and the date of
this report.
The Directors had no interests in the shares of the Company
during the year other than the interests set out in the table above.
No Director had any material interest in any contract (other than a
service contract) with the Company or its subsidiary undertakings
during the year other than in the ordinary course of business.
The Group does not currently have shareholding guidelines or
requirements for Directors all of whom are non-executive.
Executives, all of whom are below Board level, participate in the
Groups LTIP which entitles them to phantom share awards.
Awards that have been granted to Diego Hernndez under the LTIP
with one or more outstanding components are set out on page 106.
Further details on the LTIP are set out on page 104.
During the period, no Director was eligible for any short-term or
longterm incentive awards and no Director owns any shares that
have resulted from the achievement of performance conditions.
Letters of appointment
Each Director has a letter of appointment with the Company.
The Company has a policy of putting all Directors forward for
reelection at each Annual General Meeting, in accordance with
theUK Corporate Governance Code. Under the terms of the letters,
if a majority of shareholders do not confirm a Directors appointment,
the appointment will terminate with immediate effect. In other
circumstances, the appointment may be terminated by either
partyon one months prior written notice.
There is a contract between Antofagasta Minerals S.A. and Asesoras
Ramn F Jara Ltda (formerly E.I.R.L.) dated 2 November 2004 for
the provision of advisory services by Ramn Jara. This contract does
not have an expiry date but may be terminated by either party on one
months notice. No other Director is party to a service contract with
the Group.
Voluntary disclosures executive remuneration

Diego Hernndez is responsible for leading the senior management
team and for the executive management of the Group. The Executive
Committee, led by the Antofagasta Minerals CEO, Ivn Arriagada,
is responsible for leading the day-to-day operation of the mining
business. No member of the Executive Committee, nor the
Group CEO, sits on the Board of Antofagasta plc. Consequently,
the disclosures below relating to the variable pay mechanisms,
Annual Bonus and LTIP, as well as information on the Group CEOs
remuneration arrangements above, are voluntary disclosures to
provide shareholders with further information on the Groups pay
structure for senior executives.
The performance components of variable remuneration are selected

to incentivise the delivery of the business strategy, to reward Group
and individual performance and to motivate Diego Hernndez and the
Executive Committee.
As noted in the single figure table on page 101, except for the amount
attributable to 2012 LTIP Performance Share Awards which relate to
the entire performance period from 2012 until 31 December 2014,
disclosures in relation to Diego Hernndezs 2014 remuneration relate
only to the four-month period following his appointment as Group
CEO and lead executive in the Group. 2015 disclosures are for the
whole year. The table on page 110 shows the total remuneration
for the Groups lead executive over the last seven years. The total
remuneration for Diego Hernandez in 2015 was 12% lower than
thetotal remuneration for the lead executive position in 2014.
Salary and benefits
The total remuneration paid to Diego Hernndez for 2015 was
$2,534,000. Fixed remuneration comprises base salary and
benefits, and in 2015 represented less than 35% of his total
remuneration package.
Benefits payable to Diego Hernndez reflect amounts paid to
maintain Life and Health insurance policies.
According to Chilean law, all employees are required to pay their
own pension and compulsory healthcare contributions. No additional
contributions are made by the Group, including in relation to
Diego Hernndez.
Diego Hernndezs total remuneration package is determined by
the Remuneration and Talent Management Committee, taking into
account the performance of the Group and his personal performance.
The Company also benchmarks each element of his remuneration
and his total remuneration package by reference to FTSE 100,
FTSEmining and comparable international mining companies.
Employment contract
Diego Hernndez is employed under a contract of employment
with Antofagasta Minerals S.A., a subsidiary of Antofagasta plc.
His contract is governed by Chilean Labour Law. It does not have a
fixed term and can be terminated by either party on 30 days notice
in writing. Except in the case of termination for breach of contract
or misconduct under the Chilean Labour Code, Diego Hernndez is
entitled to receive one months base salary for each year of service
on termination, otherwise no other compensations or benefits are
payable on termination of his employment. The salary payable to
Diego Hernndez under his employment contract as of 1 September
2014 was Ch$44,871,653 ($75,669) per month and his salary is
adjusted for inflation in Chile every three months.
His total salary payments for 2015 were Ch$556,654,801 ($847,103)
and other than adjustments for inflation, there were no other
adjustments to his salary in 2015. Under his employment agreement,
Diego Hernndez is entitled to 22 working days paid holiday per year.
Diego Hernndez is entitled to Life and Health insurance. Because the
Group CEOs salary is paid in Chilean pesos, it is subject to annual
exchange rate movements when reported in US dollars.
OVERVIEW
Annual bonus
Employees are eligible to receive cash awards under the Annual Bonus Plan based on Group and individual performance. The bonus plan
focuses on the delivery of annual financial and non-financial targets designed to align remuneration with the Groups strategy and create
aplatform for sustainable future performance. In 2015, the bonus payable to the Group CEO was attributable 70% to the performance
oftheGroup and 30% to personal performance, according to metrics that were fixed at the beginning of the year.
The bonus payable to the Group CEO for achieving the Group and personal performance targets in 2015 was 50% of annual base salary
(sixmonths base salary).
In 2015, the bonus payable to the CEO of Antofagasta Minerals was attributable 70% performance of the Group and 30% to personal
performance, according to metrics that were fixed when he joined the Group in 2015. The bonus payable to each Vice President was
attributable 50% to the performance of the Group and 50% to the performance of that Vice President, according to metrics that were
fixedatthe beginning of the year.
In 2015, Group performance under the Annual Bonus Plan was as follows:
58%
16%
15%
Core Business
EBITDA 2
Production3
Copper Production (13.6%)
Gold Production (0.9%)
Molybdenum Production (0.5%)
Costs
Cash Costs Before By-product Credits (22%)
Corporate Expenditure (2%)
Operating Companies Capex
Growth Projects Execution4
Exploration and Development Resources increase
Business Development Growth M&A
Sustainability and Organisational Capabilities
Safety KPIs, Reporting and Safety Model
People Talent Management
Environmental Performance
Social Programmes
Transformational Initiatives Nexo Project
24%
3%
21%
13%
3%
5%
21%
10%
2%
2%
5%
2%
Total
2015
Minimum
2015
Target
2015
Maximum
2015
Outcome
2015
Result1 %
$m
1,059
1,176
1,294
832
90
kt
koz
kt
668
235
7.5
710
250
8.0
732
258
8.2
626
214
10.1
90
90
110
1.81
136
94.5
110
104.2
Measure
$/lb
$m
Mt CuF
1.86
1.75
1.70
152
145
137
Measured according to schedule and budget
Measured according to schedule/budget/quality
6.5
6.8
7.2
Measured according to KPIs and milestones
7.9
98.6
110
110
96.3
108.4
102.7
108.6
107.6
97.1
Measured according to KPIs and milestones
1 Performance range is 90-110% where 90% = threshold, 100% = meets expectations/target, and 110% = outstanding performance/stretch.
2 Mining division only.
3 Excludes Zaldvar.
4 Split between the Antucoya Project (6%), Encuentro Oxides (4%), Los Pelambres Incremental Expansion (1%), Centinela Second Concentrator (1%) and Centinela Molybdenum Plant (1%).
The choice of these criteria, and their respective weightings, reflect the Committees belief that any incentive compensation should be
tied both to the overall performance of the Group and to those areas of the business that the relevant individual can directly influence.
The Committee reviewed the results for 2015 in November 2015 and January 2016 and decided to recommend that the Board use its
discretion to lower the 2015 Group performance outcome as it applies to Diego Hernndez and the Executive Committee from 97.1% to 95%
to reflect that 2015 was a challenging year for the Group in particular with production substantially missing budget and a fatality at Michilla.
Antofagasta plc 103
OTHER INFORMATION
Objective
Weighting
GOVERNANCE
The Group performance criteria for the Annual Bonus Plan and the individual performance criteria for the Group CEO are set annually by
theCommittee. The individual performance criteria for the Executive Committee are set by the Group CEO and reviewed by the Committee.
The average maximum available award for the Executive Committee members under the terms of the Annual Bonus Plan, which would
reflect maximum individual and Group performance, is 67% of base salary. In 2015, the average award for the Executive Committee
members was approximately 32% of base salary. Individual award levels are calibrated at the conclusion of each annual performance
period to ensure that performance targets remain stretching and that high or maximum payments under each plan are received only
forexceptional performance.
STRATEGIC REPORT
The maximum bonus payable to the Group CEO for achieving stretch performance targets in 2015 was 100% of annual base salary
(12 months base salary).

Remuneration
The Committee, with input from the Board, assessed Diego Hernndezs performance against his individual objectives as 104% for his
individual contribution to the business during the year.
Diego Hernndezs performance against his individual objectives is summarised below:
Category
Performance
Results
Effective implementation of, and performance against, the Groups safety and health model with the exception
of an unacceptable fatality at Michilla.
Copper production below target.
Unit costs higher than target due to lower than forecast production.
Successful handling of the closure of mining operations at Michilla.
Antucoya commenced production once construction issues were resolved.
On budget progress at the Encuentro Oxides project.
Centinela Molybdenum Plant project approved for construction.
Leadership
Strong progress on developing in-house construction management expertise for the Encuentro Oxides
andCentinela Molybdenum Plant projects.
Strong leadership demonstrated across the Group with good progress on safety, succession planning
andtalent management.
Strong mentorship of the Executive Committee.
Further progress on rolling out and strengthening the Groups leadership values and behaviours model.
Strategic development
Capital and
cost reductions
Further progress developing synergies between the Groups operations.

Completed the sale of the water division.
Acquisition of 50% of Zaldvar, with operatorship.
Significant and successful headcount reductions across all areas were carried out during the year.
Cost reductions of $245 million during the year.
Capital expenditure reduced by $598 million to $1,049 million (stated on a cash flow basis).
Maintained a strong balance sheet with net debt of $1,024 million and low gearing.
Based on performance achieved against targets during the 2015 financial year, the Committee determined, based on the performance metrics,
that Diego Hernndez would receive a bonus payment of $321,000 for 2015.
Because the annual bonus is paid in Chilean pesos, it is subject to annual exchange rate movements when reported in US dollars.
Long-Term Incentive Plan
The Company introduced the LTIP at the end of 2011. Eligibility to participate in the LTIP is determined by the Committee each year on
an individual basis and all members of the Executive Committee currently participate. The first awards under the LTIP were granted on
29 December 2011 and awards have since been granted annually. Under the rules of the LTIP, Directors are not eligible to participate.
Under the LTIP, participants are eligible to receive phantom share awards (conditional rights to receive cash payment by reference to
aspecified number of the Companys ordinary shares), which are paid in cash upon vesting and are made to participants based on the
priceofthe Companys ordinary shares at the time of vesting.
Awards granted pursuant to the LTIP are split between Restricted Share Awards (RSAs) and Performance Share Awards (PSAs).
The RSAs are conditional rights to receive cash payment by reference to a specified number of the Companys ordinary shares subject to
the relevant employee remaining employed by the Group when the RSAs vest. The PSAs are conditional rights to receive cash payment by
reference to a specified number of the Companys ordinary shares subject to both the satisfaction of performance conditions and the relevant
employee remaining employed by the Group when the PSAs vest.
PSAs reward performance over three years.
RSAs vest one-third in each year over a three-year period following grant of the award.
The same performance criteria apply to all participants in the LTIP, which is designed to link business objectives, shareholder value and senior
management rewards. The number of PSAs and RSAs awarded to each member of the Executive Committee is calculated as a percentage
of salary up to a limit of 200% of base salary or 325% of base salary if the Committee determines that exceptional circumstances apply.
The market value of shares in relation to which the award is to be granted is equal to the closing price on the dealing day before the grant
orifthe Committee so determines, the average of the closing price during a period determined by the Committee not exceeding five dealing
days ending with the last dealing day before the grant.
In 2015, Diego Hernndez received total payments of $481,000 in respect of the RSAs granted in 2012, 2013 and 2014. Using the average
closing share price for the last quarter of 2015 of 505.1p and the average exchange rate for the year of $1.528/1, Diego Hernndezs estimated
payment for PSA awards granted under the 2013 programme and vesting on the conclusion of performance in 2015 is $140,000. Using these
calculations, LTIP awards amounted to 73% of his base salary.
Anticipated
performance1
Measure
Weighting
Objective
Minimum
Target
Maximum
25%
Relative Total
Shareholder
Return2
EBITDA3
0% vesting at performance
below the index during the
threeyear period
0% vesting at 80%
ofmaximum or below
0% vesting at 66.481 MtCuF or
below as at 31December 2015,
taking into account
1.050 MtCuF expected
consumption over the
performance period
0% vesting at 11.817 MtCuF.
This figure corresponds to
2012 reserves, less estimated
consumption by the operating
companies over the
performance period
33% vesting at performance

equal to the index during the
three-year period
75% vesting at 90%
ofmaximum
50% vesting at 67.531 MtCuF,
the expected level of
contained resources
as at 31 December 2015
100% vesting at performance equal

to or greater than the index plus
5%during the three-year period
100% vesting at $8,150 million
100%
100% vesting at 68.581 MtCuF

contained resources as at
31December 2015, including an
additional 1.050 MtCuF increase
incontained resources in Chile
100%

This figure assumes that
onlyAntucoya has been
incorporated as reserves

This figure corresponds to the level
of contained copper reserves for
the Group at the end of 2015 and
assumes that the resources of
Antucoya and Encuentro Oxides
have been incorporated as reserves
100%
Minimum (0%)
Target (50%)
Maximum (100%)
At least two of the

four goalsachieved
Four time-based goals for

progressing Encuentro Oxides
commissioning and the
commencement of construction on
completion of feasibility studies for
various elements of the Centinela
Second Concentrator Project
0%
Full production at
January 2016
Full production at
December 2015
0%
$120/MWh
$110/MWh
25%
Over the three-year period,

zerofatalities and LTIFR less
than anaverage of 1.1
Over the three-year period, zero

fatalities and LTIFR less than an
average of 1.0
0%
Feasibility study completed

by 31 December 2015 and
EIA submitted
EIA approved and project approved

by 31 December 2015
0%
Pre-feasibility study and basic

information for the mine plan
of operation completed by
31December 2014
Pre-feasibility study with definitive

mine plan of operation completed
and environmental review process
ongoing by 31 December 2015
0%
25%
10%
Mineral
Reserves
Increase
35%
Projects,
Development
and
Sustainability
GOVERNANCE
Mineral
Resources
Increase
0%
STRATEGIC REPORT
5%
OVERVIEW
The performance criteria attaching to the PSAs granted in 2013 and anticipated performance based on estimates as at March 2016 is as follows:
1. Encuentro Oxides
andCentinela Second
Concentrator (7%)
Total
41%
1A
nticipated performance is based on estimates in March 2016. These awards will not vest until after the Groups 2015 results have been released to the market.
2 Total shareholder return is calculated to show a theoretical change in the value of a shareholding over a specified period, assuming that dividends are reinvested to purchase additional shares at
the closing price applicable on the ex-dividend date. Total shareholder return for the Euromoney Global Mining Index is calculated by aggregating the returns of all individual constituents of that
index and, for the purposes of comparison with Antofagasta plc share performance, is calculated by taking an average of the index over three months before the beginning and the end of the
period respectively.
3 Targets are calculated based on the Groups accumulated EBITDA over the period from 2013-2015, versus the 2013 budget figure and the 2013, Groups internal base case figures for 2014 and
2015. The final calculation will not be adjusted for commodity price or exchange rate fluctuations.
Antofagasta plc 105
OTHER INFORMATION
2. Antucoya (7%)
Full production at
February2016
3. Los Pelambres
energy cost (4%)
$130/MWh
4. Safety (7%)
Over the three-year period,
zero fatalities and LTIFR
less than an average of 1.3
5. Los Pelambres expansion
project (6%)
Pre-feasibility study
completed by
31 December 2015
6. Twin Metals project (4%)
Pre-feasibility study
completed by
31December 2014
At least one of the

fourgoals achieved

Remuneration
The following LTIP awards with one or more outstanding components have been granted to Diego Hernndez:
Year of
grant
2013
2014
Number of
shares over
which the
grant relates
Date of award
Performance
Share Awards
Restricted
Share Awards
45,242
12 April 2013
45,242
12 April 2013
Performance
Share Awards
Restricted
Share Awards
53,896
19 March 2014
53,896
19 March 2014
Award type
Vesting dates
Face value of
award (using
market price at
grant)
000
Market
price at
grant
End of
performance
period
% of award
receivable if
minimum
performance
achieved
12 April 2016
700
10.13
31 December 2015
0%
12 April 2014
12 April 2015
12 April 2016
19 March 2017
700
10.13
N/A
0%
750
7.85
31 December 2016
0%
19 March 2015
19 March 2016
19 March 2017
750
7.85
N/A
0%
Note: Diego Hernndez joined the Group on 1 August 2012 and was granted awards under the 2012 LTIP on 22 November 2012. The portion of RSAs that vested on 9 January 2013 was reduced pro
rata to take into account the period before he joined the Group. The payment that he received in relation to the PSAs that vested in 2015 was also reduced pro rata to the time that he has been with
the Group during the 2012 programme.
2015 Strategic Awards

Following his appointment as Group CEO, Diego Hernndez received Strategic Awards in 2015 in lieu of awards that he may otherwise have
received pursuant to the LTIP and to align his performance goals with the Groups strategy, taking into account his transition into this new role
and the associated responsibilities.
The 2015 Strategic Awards are cash awards and are not linked to the share price. The maximum performance by Diego Hernndez would
amount to a payment of $1,530,000 in 2016 and there is no guaranteed minimum payment under the terms of the 2015 Strategic Award.
Type of award
Grant date
Face value
of award
(% of base salary)
Cash Awards
Cash Awards
21 May 2015
21 May 2015
27%
153%
Face value
of award
(000)1
$230
$1,300
% vesting
at threshold
performance
End of performance period

over which the performance
conditions have been fulfilled2
100%
62%
30 April 2016
1 August 2016
1 The face value represents the maximum value of the award. The expected value of the award vesting on 1 August 2016 is 62% of the face value or $800,000.
2V
esting of the 2015 Strategic Awards is subject to Diego Hernndez remaining in employment with the Group and to performance criteria based on the Groups growth strategy and leading and
effectively managing the Groups leadership team. These individual targets are considered by the Board to be commercially sensitive; however the specific targets and performance against them
will be described retrospectively in the 2016 Annual Report.
As explained on page 101, as part of the remuneration arrangements agreed on his appointment, Diego Hernndez was granted an
exceptional, long-term Recruitment Award when he joined the Group.
OVERVIEW
Recruitment Award
Over and above the Annual Bonus Plan and the LTIP, which are both heavily weighted towards Group performance, Diego Hernndez was
tasked by the Board to build an organisation that could sustain itself in the long term in a very competitive labour market by building a depth
of talent, ensuring that succession plans were in place for all key positions in the Group and to develop a successor for the role of CEO of
Antofagasta Minerals. Over the three-year performance period, considerable work has been done and the Committee assessed that the
targets were fully met. The specific performance criteria and weightings attaching to the Recruitment Award were as follows.
Measure
12.8%
Increased leadership effectiveness of the Executive Committee evidenced by 360-degree feedback and measured against external
benchmarking performed in 2012, and in fully closing any gaps agreed with the Remuneration and Talent Management Committee.
Implementation of a succession plan for each member of the Executive Committee and for the General Managers of each of the
Groups operations evidenced by the successful identification of at least one successor for each position that is deemed ready to
assume the role at the vesting date.
Improvement of the organisational climate in the mining division, specifically regarding quality of life, recognition and development.
Implementation of a development programme for high-potential employees.
61.6%
12.8%
12.8%
The Group CEOs total remuneration in 2016 will consist of the same elements as in 2015, including:
Annual base salary of Ch$570,362,748 ($806,737) as at 1 January 2016, subject to adjustments for Chilean inflation, as described above;
An annual bonus equivalent to 50% of base salary if target performance is achieved, with a maximum of 100% if stretch targets are met;
GOVERNANCE
Indicative total remuneration in 2016
STRATEGIC REPORT
Weighting
The vesting of LTIP awards granted before 1 September 2014, which using the average closing share price for the last quarter of2015 are
equivalent to a maximum of 49% of base salary; and
The vesting of 2015 Strategic Awards, which are equivalent to a maximum of 190% of base salary.
A significant proportion of the rewards available to Diego Hernndez is dependent on the performance of the Group.
OTHER INFORMATION
Antofagasta plc 107

Remuneration
2016 Annual Bonus Plan

The Board has agreed Group performance criteria for the 2016 Annual Bonus Plan as follows.
Weighting
Objective
70%
10%
Core Business
EBITDA
25%
Copper Production
30%
Costs
Cash costs before by-product
credits(24%)
Corporate Expenditure (6%)
5%
5%
25%
5%
5%
5%
10%
Measure
Minimum
$m
-10%
tonnes
-6%
$/lb
+6%
1.65
-3%
$m
+6%
This is commercially sensitive and the Company

plansto disclose the target and outcome in the 2016
Annual Report.
Measured according to schedule and budget.
-3%
Sustaining Capital Expenditure

Growth Projects Execution
Sustainability and Organisation Capabilities
Safety
People
Environmental
Social
Target
Maximum
The Groups future metals price assumptions are

commercially sensitive and therefore the target for
EBITDA will not be disclosed in advance. However,
the Company plans to disclose the 2016 target and
outcome in the 2016 Annual Report.
710-740,000
+10%
+3%
Measured according to KPIs and milestones.
Measured according to KPIs and milestones.
The weighting attributable to core business has increased from 58% of the total scorecard in 2015 to 70% in 2016, and the weighting
attributable to sustainability (including safety) has been increased from 21% in 2015 to 25% in 2016. This reflects the challenges associated
with low forecast copper prices and the Groups goals of focusing on safety, costs and productivity.
Starting in 2016, the Board has determined that two stand-alone triggers will apply to the calculation of Group performance as follows:
1. If net profit adjusted for currency fluctuations, metals prices and exceptional items is negative, the score relating to core business will
be90%.
2. If there are one or more fatalities in a year, the final Group performance score will be reduced by 15% within the performance range.
If there are no fatalities the score willbe increased by 15% within the performance range.
In addition, the Board has the discretion to adjust the final Group performance score by up to 3%.
The Board has also agreed to adjust the ratios between Group and individual performance under the 2016 Annual Bonus Plan. In 2016,
theperformance of the Vice Presidents will be weighted 70% towards Group performance and 30% towards individual performance
(previously the split was 50/50). This change is intended to more closely align the performance of the Group CEO and the members
oftheExecutive Committee with the Groups objectives of improving safety, costs and productivity in 2016.
The PSAs granted in 2016 will be measured over a three-year

performance period. The specific targets are commercially
sensitive, and will be described retrospectively after the conclusion
of the performance period, and are based on the following
performance conditions:
Relative Total
Comparison against Euromoney Global
Shareholder Return Mining Index with 33% vesting at
performance equal to the index and
100% vesting at performance equal
to or greater than the index plus 5%
during the three-year period.
EBITDA
The maximum figure corresponds
tothe accumulated EBITDA over the
period 2016-2018. For 2016, this is
calculated using the budget figure.
For 2017 and 2018, the figures will
be the ones resulting from the base
case prepared during 2016. The final
calculation will take into account price
and exchange rate fluctuations.
Mineral Resources Performance metrics correspond
Increase
to the contained resources at the end
of 2018.
Projects,
These performance criteria relate
Development
to priority projects for the Group,
and Sustainability
environmental performance and
community relations.
5%
35%
The LTIP was amended by the Committee in March 2015. As a

consequence, any LTIP awards granted after 17 March 2015 are
subject to malus provisions under the LTIP rules. These allow the
Committee to, at its discretion, reduce the number of shares to
whichan award relates or to cancel an award as a result of:
Maximum
23%
Target
23%
30% 15%
Minimum
$3.545m
54%
$2.746m
55%
100%
$0
$0.813m
$1m
$2m
$3m
$4m
Fixed elements
Annual variable elements
Long-term variable elements
Figures are based on the following assumptions:
Minimum consists of base salary plus benefits only and excludes adjustments for inflation.
Target consists of base salary, benefits and incentive awards at 50% of the maximum
potential award.
Maximum consists of base salary, benefits and incentive awards at 100% of the maximum
potential award.
No change in the share price is included in the calculation of the potential awards.
Long-term variable elements awards are calculated using the average closing share price
forthe last quarter of 2015 of 505.1p and an exchange rate of $1.528/1.
Base salary, benefits and incentive awards are estimated in Chilean pesos and long-term
variable awards are estimated by reference to the Companys share price which is in pound
sterling. These figures are therefore subject to exchange rate fluctuations.
Remuneration structure
The Committee is satisfied that the remuneration arrangements
in place for Diego Hernndez and the Executive Committee are
linked to performance, appropriately stretching and aligned to the
business strategy. Variable remuneration is a core component of
Executive Committee remuneration and up to 61% of the Executive
Committees total annual remuneration may be achieved under the
Annual Bonus Plan and the LTIP.
actions by a participant that, in the reasonable opinion of the

Committee, amount to gross misconduct which has or may have
amaterial affect on the value or reputation of the Company or any
of its subsidiaries;
a materially adverse error in the consolidated financial statements
of the Group during the performance period; or
any reasonable circumstance that the Committee determines in
good faith to have resulted in an unfair benefit to the participant.
Antofagasta plc 109
OTHER INFORMATION
40%
20%
Measure
Group CEO
Objective
The following chart outlines the potential total remuneration of

the Group CEO in 2016 under different performance scenarios.
The chart is forward-looking and does not include information on the
vesting of awards in 2015 shown in the single figure remuneration
table on page101.
GOVERNANCE
Weighting
Illustrative application of the Remuneration Policy for the

Group CEO in 2016
STRATEGIC REPORT
The Committee completed a thorough review of the LTIP in 2015.

This included a review of the plans objectives, methodology,
participants, performance KPIs and targets. As part of this process,
the plan was benchmarked against peers both globally and in the UK,
and participants were asked to give feedback on the programme,
including whether or not the performance KPIs adequately reflect
current business challenges. As a consequence, the LTIP has been
amended so that participants will receive a greater proportion of
PSAs (70%) and a lower proportion of RSAs (30%). In addition, total
shareholder return will account for 40% of the performance criteria
attaching to 2016 PSAs (increased from 25% in 2015).
OVERVIEW
2016 Long-Term Incentive Plan Awards

Remuneration
Comparison of overall performance

andremuneration
The following graph shows the Companys performance compared
with the performance of the FTSE All-Share Index and the
Euromoney Global Mining Index over a seven-year period, measured
by total shareholder return (as defined below). The FTSE All-Share
Index has been selected as an appropriate benchmark as it is the
most broadly based index to which the Company belongs and relates
to the London Stock Exchange, the market where the Companys
ordinary shares are traded.
Total Shareholder Return
Antofagasta plc vs FTSE All-Share Index and Euromoney Global Mining Index
Total shareholder return performance in comparison with the

Euromoney Global Mining Index is one of the performance criteria
for Performance Share Awards granted pursuant to the LTIP as
described above.
Total shareholder return is calculated to show a theoretical change
inthe value of a shareholding over a period, assuming that dividends
are reinvested to purchase additional shares at the closing price
applicable on the ex-dividend date. Total shareholder return for the
FTSE All-Share Index and the Euromoney Global Mining Index is
calculated by aggregating the returns of all individual constituents
ofthose indices at the end of the seven-year period.
The total remuneration of the lead executive in the Group for the
pastseven years, in US dollars, has been as follows:
Single figure
remuneration for
the Groups lead
executive $000s
450
400
350
300
250
200
150
100
50
0
Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015
Antofagasta
FTSE All-Share
Euromoney Global Mining
Total Shareholder Return represents share price growth plus dividends reinvested over the
period. Total Return Basis Index 31 December 2008 = 100.
Source: Datastream.
Chairman
Jean-Paul Luksic
Group CEO
Diego Hernndez
Total
Percentage change
on previous year
Proportion of
maximum annual
bonuspaid to
theGroup CEO
Proportion of
maximum LTIP
awards vesting
infavour of the
Group CEO3
2009
2010
2011
2012
2013
20141,2
2015
3,184 3,330 3,521 3,598 3,615 2,196
688
3,184 3,330 3,521 3,598 3,615 2,884
2,534
2,534
(12)%
69%
39%
76%
41%
1T
he single figure remuneration for the Groups lead executive in 2014 comprises of Jean-Paul
Luksics remuneration until 1 September 2014 (when he became Non-Executive Chairman)
and Diego Hernndezs remuneration from 1 September 2014 (when he became Group CEO).
2T
he Chairman was not eligible for variable remuneration and the 2014 percentage figures
therefore only relate to the 2014 annual bonus and LTIP awards vesting in favour of the
Group CEO.
3T
he proportion of maximum LTIPs vesting in favour of the Group CEO for 2014 76% vesting
of Performance Share Awards granted in 2012. The proportion of maximum LTIPs vesting in
favour of the Group CEO for 2015 represents an estimated 41% vesting of the Performance
Share Awards granted in 2013. Because Restricted Share Awards do not have a performance
element, they are not included in these calculations.
Relative importance of remuneration spend
The total remuneration paid to Diego Hernndez for 2015 was 12%
lower than the total remuneration paid to the lead executive in the
Group. This included a 66% decrease in fees/base salary and a 35%
decrease in benefits. These amounts are higher than the overall
decrease in total remuneration because a large proportion of Diego
Hernndezs total remuneration is made up of variable remuneration,
whereas none of the Chairmans remuneration was or is made up
ofvariable remuneration.
The table below shows the total expenditure on employee

remuneration, the levels of distributions to shareholders and
thetaxation cost in 2014 and 2015.
Executive Chairman/
Group CEO
Group employees
Percentage
change in
base salary
Percentage
change in
benefits
(66)%
4.3%
(35)%
0%
Percentage
change in
annual bonus
(51)%1
(10)%2
2T
his figure relates to the percentage change in annual bonus for mining division employees and
does not include a one-off bonus paid to employees as a result of the conclusion of collective
bargaining agreements with labour unions in 2014. Mining division employees were chosen
asthe comparator group here because employees in the transport division did not participate
inthe Annual Bonus Plan in 2015.
B
C
2014
($m)
A Employee remuneration1
B Distribution to shareholders2
C Taxation3
502.8
212.0
712.7
2015 Percentage
($m)
change
422.3
30.6
75.9
(16)%
(86)%
(89)%
1T
he employee remuneration cost includes salaries and social security costs, as set out
inNote7 to the financial statements.
2T
he distributions to shareholders represent the dividends proposed in relation to the year,
asset out in Note 12 to the financial statements.
3T
axation has been included because it provides an indication of the contribution of the Groups
operations in Chile to the Chilean State via its tax contributions. The taxation cost represents
the current tax charge in respect of corporate tax, mining tax (royalty) and withholding tax,
asset out in Note 9 to the financial statements.
Other information
This report does not disclose information in relation to the following,
which were not relevant for the 2015 financial year:
payments for loss of office no such events occurred in the year;
further details on pension arrangements Directors do not receive
pension benefits; and
Should such events occur in the future, the necessary disclosures

willbe made at the appropriate time.
The Remuneration Report has been approved by the Board and
signed on its behalf by
Tim Baker
Chairman of the Remuneration
and Talent Management Committee
14 March 2016
Antofagasta plc 111
OTHER INFORMATION
payments to past Directors no such payments were made

inthe year.
1T
his figure relates to the percentage change in annual bonus for Diego Hernndez only
between 2014 and 2015 since Jean-Paul Luksic did not receive variable remuneration.
GOVERNANCE
The table below compares the changes from 2014 to 2015 in fees/
base salary, benefits and annual bonus paid to the Groups lead
executive and Group employees as a whole. The underlying elements
of the lead executives pay are calculated using the values reported
inthe single figure remuneration table on page 101.
STRATEGIC REPORT
The equivalent average percentage change for Group employees

as a whole was an increase of 4.3%. This comprised a 4.3%
increase in salaries and a 0% movement in benefits. It is common
for employment contracts in Chile to include an annual adjustment
forChilean inflation and most Group employees base salaries in
Chileare linked to inflation. In 2015, Chilean inflation was 4.4%.
OVERVIEW
Relative change in remuneration

The shares of Antofagasta plc are listed on the main market

of the London Stock Exchange. As explained in the Corporate
Governance Report on page 71, the controlling shareholders of
the Company hold approximately 65% of the Companys ordinary
shares. The majority of the remaining approximately 35% of the
Companys ordinary shares are held by institutional investors,
mainly based in the UK and North America.
The Company maintains an active dialogue with institutional

shareholders and sell-side analysts, as well as potential shareholders.
This communication is managed by the investor relations team in
London, and includes a formal programme of presentations and
roadshows to update institutional shareholders and analysts on
developments in the Group.
The Company publishes quarterly production figures as well as the
half-year and full-year financial results. Copies of these production
reports, financial results, presentations and other press releases
issued by the Company are available on the Companys website.
The Group also publishes a separate Sustainability Report to provide
further information on its social and environmental performance,
which is available on the Companys website in both Spanish
and English.
The Company held regular meetings with institutional investors and
sell-side analysts throughout the year, which included international
investor roadshows, presenting at industry conferences and to
institutional sales forces. These were attended by the Group
CEO and various members of the management team, including
the CEO of Antofagasta Minerals, the Vice President of Finance
and Administration, the Vice President of Marketing and the Vice
President of Development.
What our investors focused on most in 2015

cost reduction programmes to control operating and capital costs;
capital allocation;
progress of the Antucoya project;
acquisition of 50% of the Zaldvar copper mine;
the sale of the Groups water business;
impact of events in Chile, including prolonged rains, earthquakes
and the availability of energy and water;
community and legal issues surrounding the Mauro tailings storage
facility at Los Pelambres;
the Groups focus on brownfield development projects and the
potential from longer-term growth projects;
the capital distribution policy of the Group; and
supply and demand factors in the world copper market.
The Board receives regular summaries and feedback in respect
of the meetings held as part of the investor relations programme.
The Companys Annual General Meeting is also used as an
opportunity to communicate with both institutional and private
shareholders and all of the Directors met shareholders at the 2015
Annual General Meeting.
Shareholder engagement calendar 2015
FEB
Group CEO presented at
industry conference for
institutional investors
3 days of 1-on-1 meetings
with over 50 investors
MAR
MAY
JUN
Presentation of Full-Year
2014 results
Mining division
CEO presentation at
industry conference for
institutional investors
US west coast roadshow

with VP Finance
and Administration
European roadshow
4 days
London roadshow
2 days
2 days of 1-on-1 meetings

withover 40 investors
Annual General Meeting
in London
Institutional investor
conference in California
OVERVIEW
How our investors can find us
ur Group website
O
www.antofagasta.co.uk
The Chairman met with a number of the Groups largest shareholders

during the year to hear their views about the Company, its strategy,
management and governance. During these meetings a wide range
of topics were discussed, including:
the use of proxy voting agency recommendations;
Since his appointment as Senior Independent Director in 2011,

WilliamHayes has met with a number of the Groups largest
shareholders and proxy voting agencies, allowinghim to provide his
perspective on the Groups governance and strategy and to obtain
their feedback on the Group.
In October 2015, WilliamHayes met with major shareholders and
proxy voting agencies to focus on the issues that were most relevant
to investors during the course of the year and to follow up onmeetings
that the Chairman had attended earlier in the year.
the determination of independence for a Director;

the application of the comply and explain principle;
talent development and succession planning;
the structure of the Groups LTIP;
Board composition and diversity;
Senior Independent Director
GOVERNANCE
Shareholders also met with several Directors, including the Chairman,

the Senior Independent Director and Chairman of the Audit and Risk
Committee, the Chairman of the Projects Committee and members
of the other Board Committees during the year.
STRATEGIC REPORT
Investor section
www.antofagasta.co.uk/
investors/
the link between Group pay structures and incentives

and strategy; and
OTHER INFORMATION
progress in the court cases involving Los Pelambres.

The Chairman also used these meetings to explain the changes to
the Boards structure in 2014, to update shareholders on progress
following these changes and to clarify how corporate governance
developments are likely to assist the Group in the years ahead.
AUG
Presentation of Half-Year
2015 results
European roadshow
4 days
London roadshow
2 days
SEP
Investor relations
team attended three
industry conferences
in the UK and engaged
with shareholders
OCT
NOV
VP Marketing presented
to investors during
London Metals Week
Investor relations
team attended two
industry conferences
in the UK and engaged
with shareholders
US east coast roadshow

2 days
Antofagasta plc 113
Directors Report
Directors
Capital structure
Directors that have served during the year and summaries of current
Directors key skills and experience are set out in the Corporate
Governance Report on pages 74 to 76.
Details of the authorised and issued ordinary share capital, including

details of any movements in the issued share capital during the year,
are shown in Note 31 to the financial statements. The Company has
one class of ordinary shares, which carry no right to fixed income.
Each ordinary share carries one vote at any general meeting of
the Company.
Post balance sheet events

There have been no post balance sheet events.
Financial risk management
Details of the Companys policies on financial risk management are
set out in Note 26 to the financial statements.
Results and dividends
The consolidated profit before tax (from continuing operations) has
decreased from $1,515.6 million in 2014 to $259.4 million in 2015.
An interim dividend of 3.1 cents was paid on 8 October 2015 (2014
interim dividend 11.7 cents). No final dividend for the year ended
31 December 2015 is proposed to be paid. This gives total dividends
per share proposed in relation to 2015 of 3.1 cents (2014 21.5 cents)
and a total dividend amount in relation to 2015 of $30.6 million (2014
$212.0 million).
Preference shares carry the right to a fixed cumulative dividend
of 5% per annum. The preference shares are classified within
borrowings and preference dividends are included within finance
costs. The total cost of dividends paid on preference shares and
recognised as an expense in the income statement was $0.2 million
(2014 $0.2 million). Further information relating to dividends is
set out in the Financial review on page 67 and in Note 12 to the
Political contributions
The Group did not make political donations during the year ended
31 December 2015 (2014 nil).
Auditors
The auditors, PwC LLP have indicated their willingness to continue
inoffice and a resolution seeking to re-appoint them will be proposed
at the Annual General Meeting.
Disclosure of information to auditors
The Directors in office at the date of this report have each
confirmed that:
(a) so far as he or she is aware, there is no relevant audit information
of which the Groups auditors are unaware; and
(b) he or she has taken all the steps that he or she ought to have
taken as a Director in order to make himself aware of any relevant
audit information and to establish that the Groups auditors are
aware of that information.
Details of the preference share capital are shown in Note 24 to the

financial statements. The preference shares are non-redeemable
and are entitled to a fixed cumulative dividend of 5% per annum.
Each preference share carries 100 votes on a poll at any General
Meeting of the Company.
The nominal value of the issued ordinary share capital is 96.1% of the
total sterling nominal value of allissued share capital, and the nominal
value of the issued preference share capital is 3.9% of the total
sterling nominal value of all issued share capital.
There are no specific restrictions on the transfer of shares or on
their voting rights beyond those standard provisions set out in the
Companys Articles of Association and other provisions of applicable
law and regulation (including, in particular, following a failure to
provide the Company with information about interests in shares as
required by the Companies Act 2006). The Company is not aware of
any agreements between holders of the Companys shares that may
result in restrictions on the transfer of securities or on voting rights.
The Company has the authority to purchase up to 98,585,669 of
its own ordinary shares, representing 10% of the issued ordinary
share capital. With regard to the appointment and replacement of
Directors, the Company is governed by its Articles of Association,
the UK Corporate Governance Code 2014, the Companies Act 2006
and related legislation. The Articles of Association may be amended
by special resolution of the shareholders. There are no significant
agreements in place that take effect, alter or terminate upon a
change of control of the Company. There are no agreements in place
between the Company and its Directors or employees that provide
forcompensation for loss of office resulting from a change of control
of the Company.
The Company was also authorised by a shareholders resolution

passed at the 2015 AGM to purchase up to 10% of its issued ordinary
share capital. Any shares which have been bought back may be held
as treasury shares or, if not so held, must be cancelled immediately
upon completion of the purchase, thereby reducing the amount of
the Companys issued and authorised share capital. This authority
will expire at this years AGM and a resolution to renew the authority
for a further year will be proposed. No shares were purchased by the
Company during the year.
Directors interests and indemnities
Other statutory disclosures

The Corporate Governance Report on pages 70 to 113, the Statement
of Directors Responsibilities on page 116 of this Annual Report
and Notes 26 to the financial statements are incorporated into the
Directors Report by reference.
Other information can be found in the following sections of the
Strategic Report:
Location in
Strategic Report
Future developments in the business of the Group

Viability and going concern statement
Subsidiaries, associates and joint ventures
Employee consultation
Greenhouse gas emissions
Pages 39 to 52
Page 38
Pages 39 to 52
Pages 61 to 63
Page 57
By order of the Board
Julian Anderson
Company Secretary
14 March 2016
Antofagasta plc 115
OTHER INFORMATION
In accordance with the Companys Articles of Association and to

the extent permitted by the laws of England and Wales, Directors
are granted an indemnity from the Company in respect of liabilities
personally incurred as a result of their office. In respect of those
matters for which the Directors may or may not be indemnified,
theCompany maintained a Directors and Officers liability insurance
policy throughout the financial year. A new policy has been entered
into for the current financial year.
Notifiable major share interests in which the Company has been

made aware are set out in the Corporate Governance Report
onpage 71.
Details of Directors contracts and letters of appointment,

remuneration and emoluments, and their interests in the shares
ofthe Company as at 31 December 2015 are given in the Directors
Remuneration Report. No Director had any material interest in a
contract ofsignificance (other than a service contract) with the
Company oranysubsidiary company during the year.
GOVERNANCE
The Companies Act 2006 requires that a Director must avoid a

situation where he has, or can have, a direct or indirect interest
thatconflicts, or possibly may conflict, with the Companys interests.
The Company has undertaken a process to identify and, where
appropriate, authorise and manage potential and actual conflicts.
Each Director has identified his or her interests that may constitute
conflicts including, for example, directorships in other companies.
The Board, with detailed assistance from the Nomination and
Governance Committee, has considered the potential and actual
conflict situations of each of the Directors and decided in relation
toeach situation whether to authorise it and the steps, if any, which
need to be taken to manage it. The authorisation process is not
regarded as a substitute for managing an actual conflict of interest
if one arises. The monitoring and, if appropriate, authorisation of
actual and potential conflicts of interest is an ongoing process.
Directors arerequired to notify the Company of any material changes
in those positions or situations that have already been considered, as
well as to notify the Company of any other new positions or situations
that may arise. In addition to considering any new situations as they
arise, the Board usually considers the conflict position of all Directors
formally each year.
STRATEGIC REPORT
Conflicts of interest
At the 2015 AGM, held on 20 May 2015, authority was given to

the Directors to allot unissued relevant securities in the Company
up to a maximum amount equivalent to two-thirds of the shares in
issue (of which one-third must be offered by way of rights issue).
This authority expires on the date of this years AGM, to be held
on 18 May 2016. No such shares have been issued. The Directors
propose to renew this authority at this years AGM for the following
year. A further special resolution passed at that meeting granted
authority to the Directors to allot equity securities in the Company
for cash, without regard to the pre-emption provisions of the
Companies Act 2006. This authority also expires on the date of this
years AGM and the Directors will seek to renew this authority for the
following year.
OVERVIEW
Authority to issue shares and authority topurchase own shares
Statement of Directors Responsibilities
Statement of Directors Responsibilities in relation to the

The Directors are responsible for preparing the Annual Report,
theDirectors Remuneration Report and the financial statements
inaccordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements
for each financial year. Under that law the Directors have prepared
the Group financial statements in accordance with International
Financial Reporting Standards (IFRSs) as adopted by the European
Union, and the Parent Company financial statements in accordance
with United Kingdom Generally Accepted Accounting Practice
(United Kingdom Accounting Standards and applicable law), including
Financial Reporting Standard 101 Reduced Disclosure Framework
(FRS 101). Under company law the Directors must not approve
thefinancial statements unless they are satisfied that they give a true
and fair view of the state of affairs of the Group and the Company and
of the profit or loss of the Group for that period. In preparing these
financial statements, the Directors are required to:
select suitable accounting policies and then apply
them consistently;
make judgements and accounting estimates that are reasonable
and prudent;
state whether IFRSs as adopted by the European Union and
applicable UK Accounting Standards, including FRS 101, have
been followed, subject to any material departures disclosed and
explained in the Group and Parent Company financial statements
respectively; and
prepare the financial statements on the going concern basis unless
it is inappropriate to presume that the Company will continue
in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Companys
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and the Group and enable them to
ensure that the financial statements and the Directors Remuneration
Report comply with the Companies Act 2006 and, as regards the
Group financial statements, Article 4 of the IAS Regulation. They are
also responsible for safeguarding the assets of the Company and the
Group and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the
Companys website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
The Directors consider that the Annual Report and Financial

Statements, taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders to
assess the Companys position and performance, business
modeland strategy.
Each of the Directors, whose names and functions are listed in
the Corporate Governance Report confirm that, to the best of
their knowledge:
the Group financial statements, which have been prepared in
accordance with IFRSs as adopted by the EU, give a true and fair
view of the assets, liabilities, financial position and profit of the
Group; and
the Strategic Report and the Directors Report include a fair review
of the development and performance of the business and the
position of the Group, together with a description of the principal
risks and uncertainties that it faces.
By order of the Board
Jean-Paul Luksic
Chairman

14 March 2016
William Hayes
Senior Independent
Director and Chairman of the
Financial statements
118
Consolidated income statement
122
Consolidated statement of comprehensive income
123
Consolidated statement of changes in equity
123
124
Consolidated cash flow statement
125
Notes to the financial statements
126
Parent Company financial statements
179
STRATEGIC REPORT
Consolidated balance sheet
OVERVIEW
Independent auditors report
GOVERNANCE
OTHER INFORMATION
Antofagasta plc 117

to the members of Antofagasta plc
Report on the financial statements
Our opinion
What we have audited
In our opinion:
The financial statements, included within the Annual Report, comprise:
Antofagasta plcs group financial statements and Parent Company

financial statements (the financial statements) give a true and fair
view of the state of the Groups and of the Parent Companys affairs
asat 31 December 2015 and of the Groups profit and cash flows for
the year then ended;
the Consolidated Balance Sheet as at 31 December 2015;
the Group financial statements have been properly prepared

in accordance with International Financial Reporting Standards
(IFRSs) as adopted by the European Union;
the Consolidated Cash Flow Statement for the year then ended;
the parent company financial statements have been properly

prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
the Statement of changes in equity of the Parent Company; and
the financial statements have been prepared in accordance with

the requirements of the Companies Act 2006 and, as regards the
Group financial statements, Article 4 of the IAS Regulation.
the Balance Sheet of the Parent Company as at 31 December 2015;

the Consolidated Income Statement and the Consolidated
Statement of Comprehensive Income for the year then ended;
the Consolidated Statement of Changes in Equity for the year
then ended;
the notes to the financial statements, which include a summary
ofsignificant accounting policies and other explanatory information.
The financial reporting framework that has been applied in the
preparation of the Group financial statements is applicable law
and IFRSs as adopted by the European Union. The financial
reporting framework that has been applied in the preparation
of the Parent Company financial statements is United Kingdom
Accounting Standards, comprising FRS 101 Reduced Disclosure
Framework, and applicable law (United Kingdom Generally
AcceptedAccounting Practice).
Our audit approach

Context
The context for our audit was set by Antofagastas major activities in
2015, against a backdrop of a significant fall in spot commodity prices,
along with a number of changes in the composition of the Group.
Antofagasta is one of the largest copper producers in the world,
operating up to five mines in Chile, and its earnings were impacted
by the fall in copper prices during the year. In the year, Antofagasta
acquired a 50% interest in the Zaldvar mine and became the operator
of this joint venture, in addition to acquiring 100% of Duluth Metals
and consequently the Twin Metals exploration project. The Michilla

mine, which had reached the end of its mine life, was placed on care
and maintenance in December. At year end, the Antucoya mine was
still being commissioned, and commercial production is expected to
commence in the first half of 2016. Away from its mining operations,
the Group also exited the water business in May, selling its entire
interest in Aguas de Antofagasta S.A. (ADASA), and completed
the disposal of its transport operation in Bolivia, Empresa Ferroviaria
Andina S.A.(FCA).
Overview
Overall group materiality: $65 million which represents 5% of three-year average of profit before tax adjusted
forone-off items.
Materiality
We identified the three mine sites, Los Pelambres, Centinela and Antucoya, which in our view, required an audit
oftheir complete financial information.
Audit scope
We conducted other audit procedures over the recently acquired Zaldvar mine and at the corporate offices in
London and Chile.
Taken together, the locations and functions where we performed our audit work accounted for 91% of revenue
and approximately 76% of absolute adjusted profit before tax (ie the sum of the numerical values without regard
towhether they were profits or losses for the relevant locations and functions).
Areas of
focus
Impairment assessments at Antucoya and Centinela.

Accounting for the acquisition of Zaldvar.
The scope of our audit and our areas of focus

We conducted our audit in accordance with International Standards
on Auditing (UK and Ireland) (ISAs (UK & Ireland)).
whether there was evidence of bias by the directors that represented

a risk of material misstatement due to fraud.
We designed our audit by determining materiality and assessing the

risks of material misstatement in the financial statements. In particular,
we looked at where the directors made subjective judgements,
for example in respect of significant accounting estimates that
involved making assumptions and considering future events that are
inherently uncertain. As in all of our audits, we also addressed the
risk of management override of internal controls, including evaluating
The risks of material misstatement that had the greatest effect on our
audit, including the allocation of our resources and effort, are identified
as areas of focus in the table below. We have also set out how we
tailored our audit to address these specific areas in order to provide an
opinion on the financial statements as a whole, and any comments we
make on the results of our procedures should beread in this context.
This is not a complete list of all risks identified by our audit.
Impairment assessments at Antucoya

and Centinela
We considered the Directors impairment trigger analysis and agree that impairment indicators existed
atAntucoya and Centinela, and that these were the appropriate CGUs for impairment testing purposes.
In accordance with IAS 16 Property, plant and

equipment the Directors are required to perform
areview for impairment of long-lived assets at any
time an indicator of impairment exists.
We evaluated the Directors future cash flow forecasts, and the process by which they were drawn up,
including verifying the mathematical accuracy of the cash flow models and agreeing future capital and operating
expenditure to the latest Board approved budgets and the latest approved Life of Mine plans. We assessed the
reasonableness of the Directors future capital and operating expenses in light of their historical accuracy and
the current operational results and concluded the forecasts had been appropriately prepared, notwithstanding
that Antucoya has no operational history and the operating parameters are based on the feasibility study
adjusted for the latest expectations.
The Directors identified that impairment indicators

existed at Antucoya and Centinela, as both mines are
heavily leveraged to movements in copper prices.
The Directors identified that the Antucoya and
Centinela Cash Generating Units (CGUs) had
a carrying value of $1,660 and $3,870 million
respectively at 31 December 2015. The recoverable
amounts calculated by the directors were in excess of
the carrying values, and accordingly, no impairment
was recorded.
As a value-in-use methodology does not permit

future expansion or optimisation plans to be
included within the discounted cash flow model, the
Directors have used a FVLCD valuation methodology
to determine the recoverable amount, applying
assumptions that a market participant would use
todetermine fair value.
The acquisition of Zaldvar presents a number of

complex accounting judgements in respect of the
assessment of whether the Group controls or jointly
controls the business, along with whether the
business is a joint venture or joint arrangement.
We performed sensitivity analysis around the key assumptions within the cash flow forecasts using a range of
higher discount rates and lower long term copper prices and there was no impairment. Having done so, whilst
we agreed with the directors conclusion, we found that a reasonably plausible downside scenario, within our
reasonable range, would result in an impairment of both CGUs.
In light of the above, we reviewed the appropriateness of the related disclosures in Note 15 of the financial
statements, including the sensitivities provided with respect to the relevant CGUs, and concluded they
were appropriate.
The Directors determined that based on the respective rights and obligations of each investor, Zaldvar was
jointly controlled and should be equity accounted as a joint venture. We examined the terms of the sale and joint
venture agreements and considered the substantive rights of the investors over the relevant activities of the
investee and determined that equity accounting was appropriate.
The Group engaged an independent valuation expert to perform the purchase price allocation exercise and
weassessed the competency and objectivity of the expert, and the scope of their work.
We read the experts report and discussed with the expert their valuation methodology for each category
ofasset and liability, along with the key judgements, including copper prices and discount rates, they made
indetermining the fair values. We determined that the methods used by the Directors expert were appropriate
and the fair values appeared reasonable based on the judgements made.
The Group has disclosed that the purchase price allocation remains provisional as the final working capital true
up has not been agreed with the vendor and further adjustment to the consideration, or the allocation to assets
and liabilities, could result.
We concurred with the Directors experts assessment of the provisional purchase price allocation and the
appropriateness of the related disclosures in Note 17 of the financial statements.
How we tailored the audit scope

We tailored the scope of our audit to ensure that we performed
enough work to be able to give an opinion on the financial statements
as a whole, taking into account the geographic structure of the Group,
the accounting processes and controls, and the industry in which the
Group operates. As part of our planning for the audit, we reviewed
the predecessor auditors working papers.
The core mining business consists of five assets: Los Pelambres
and Centinela, which are the main operating assets; Antucoya,
which is under construction; Michilla, which was placed on care
and maintenance in December 2015; and Zaldvar, a joint venture
with Barrick Gold Corporation. Centinela consists of the combined
El Tesoro and Esperanza assets. The Group acquired its interest in
Zaldvar in December 2015, and is now the operator of this asset.
The Groups non-core divisions consist of: a transport operation,
Ferrocarril Antofagasta a Bolivia and a water business, Aguas de
Antofagasta. The water business was sold in May 2015 and as such
its results for the period are presented as discontinued operations.
All of the above operations are located in Chile. In addition, the

Group has corporate head offices located in both Santiago, Chile
(Antofagasta Minerals) and London, UK (Antofagasta plc).
In establishing the overall approach to the Group audit, we determined
the type of work that needed to be performed at each of the three
mine sites and the corporate offices in Chile, by us, as the Group
engagement team and by component auditors from PwC Chile
operating under our instruction. Los Pelambres and Centinela were
considered to be financially significant components of the Group, due
to their contribution towards Group profit before tax, and sorequired
audits of their complete financial information. Antucoya
was also subject to an audit of its complete financial information,
inresponse to the risk of impairment to its carrying value.
We also requested that component auditors perform specified
procedures over the recently acquired Zaldvar mine, the corporate
offices in Chile, and specific line items of other entities within the
Group to ensure that we had sufficient coverage from ouraudit work
for each line of the Groups financial statements.
Antofagasta plc 119
OTHER INFORMATION
Business combinations accounted for under IFRS 3

Business Combinations are inherently complex,
requiring the directors to perform a purchase price
allocation exercise to fair value the assets and
liabilities of the acquired business. In determining
the purchase price allocation the Directors engaged
an external expert. As Zaldvar was acquired on
1 December 2015, there was limited time to conduct
this exercise and in particular, the working capital
adjustment period remained open.
We independently calculated a weighted average cost of capital by making reference to market data,
andconsidered the CGU specific risks. The discount rate used by the Directors of 8% fell at the lower
endofwhat we calculated asareasonable range.
Accounting for the acquisition

of Zaldvar
We formed an independent view of the copper price that a market participant might use in a fair value less
costto dispose scenario. We found that the Directors long-term copper price assumption $3.00/lb was
atthehigher end of a reasonable range.
GOVERNANCE
The determination of recoverable amount was based

on the higher of value-in-use and fair value less costs
to dispose (FVLCD), which requires judgement on
the part of the directors in valuing the relevant CGUs.
For each CGU, utilising our valuation experts, we evaluated the appropriateness of key market related
assumptions in the Directors valuation models, including the copper prices, discount rates, foreign currency
exchange rates and acid prices. We noted that the margin of recoverable amount above carrying value for
bothCGUs was particularly sensitive to changes in long-term copper price and discount rate assumptions.
STRATEGIC REPORT
How our audit addressed the area of focus
OVERVIEW
Area of focus

to the members of Antofagasta plc
Where work was performed by component auditors, we determined

the level of involvement we needed to have in the audit work to
be able to conclude whether sufficient appropriate audit evidence
had been obtained as a basis for our opinion on the Group financial
statements as a whole.
Going concern
A UK senior manager was seconded to PwC Chile to be an integral

part of the team. In addition the Senior Statutory Auditor visited
Chile three times, including two mine sites, and attended key
audit meetings with our component auditors and management.
The Group team also reviewed the component auditor working
papers, attended local audit clearance meetings, andreviewed other
forms of communications dealing with significant accounting and
auditing issues.
Under ISAs (UK & Ireland) we are required to report to you if we

have anything material to add or to draw attention to in relation to the
Directors Statement about whether they considered it appropriate to
adopt the going concern basis in preparing the financial statements.
We have nothing material to add or to draw attention to.
Materiality
The scope of our audit was influenced by our application of
materiality. We set certain quantitative thresholds for materiality.
These, together with qualitative considerations, helped us to
determine the scope of our audit and the nature, timing and extent
ofour audit procedures on the individual financial statement line
itemsand disclosures and in evaluating the effect of misstatements,
both individually and on the financial statements as a whole.
Based on our professional judgement, we determined materiality
forthe financial statements as a whole as follows:
Overall Group
materiality
$65 million (2014 $75 million).
How we
determinedit
5% of three-year average of profit before tax adjusted for

one-off items, primarily the profit ondisposal of ADASA.
Rationale for
benchmark applied
We believe that profit before tax is the primary measure

in assessing the performance of the Group, and is a
generally accepted auditing benchmark. We used a
three-year average due to the impact on profit before tax
of the inherent volatility in copper commodity prices, and
adjusted for one-off items to eliminate the volatility that
they introduce.
Component
materiality
For each component in our audit scope, we allocated a

materiality that is less than our overall Group materiality.
The range of materiality allocated across components
wasbetween $60million and $40 million.
We agreed with the Audit and Risk Committee that we would report
to themmisstatements identified during our audit above $3 million
(2014 $1.25 million) as well as misstatements below that amount
that, inour view, warranted reporting for qualitative reasons.
Under the Listing Rules we are required to review the Directors

Statement, set out on page 114, in relation to going concern.
We havenothing to report having performed our review.
As noted in the Directors Statement, the Directors have concluded

that it is appropriate to adopt the going concern basis in preparing
the financial statements. The going concern basis presumes that
the Group and Parent Company have adequate resources to remain
in operation, and that the Directors intend them to do so, for at least
one year from the date the financial statements were signed. As part
of our audit we have concluded that the Directors use of the going
concern basis is appropriate. However, because not all future events
or conditions can be predicted, these statements are not a guarantee
as to the Groups and Parent Companys ability to continue as a
going concern.
Other required reporting

Consistency of other information
Companies Act 2006 opinion
In our opinion, the information given in the Strategic Report and
the Directors Report for the financial year for which the financial
statements are prepared is consistent with the financial statements.
ISAs (UK & Ireland) reporting
Under ISAs (UK & Ireland) we are required to report to you if,
inour opinion:
information in the Annual Report is:
materially inconsistent with the information in the audited
financial statements; or
We have no
exceptions
to report.
apparently materially incorrect based on, or materially

inconsistent with, our knowledge of the Group and Parent
Company acquired in the course of performing our audit; or
otherwise misleading.
the statement given by the Directors on page 114, in accordance
with provision C.1.1 of the UK Corporate Governance Code
(the Code), that they consider the Annual Report taken as a
whole tobe fair, balanced and understandable and provides the
information necessary for members to assess the Groups and
Parent Companys position and performance, business model
andstrategy is materially inconsistent with our knowledge
of the Group and Parent Company acquired in the course
ofperformingour audit.
We have no
exceptions
to report.
the section of the Annual Report on page 86, as required by

provision C.3.8 of the Code, describing the work of the Auditand
Risk Committee does not appropriately address matters
communicated by us to the Audit and Risk Committee.
We have no
exceptions
to report.
Responsibilities for the financial statements

and the audit
Under ISAs (UK & Ireland) we are required to report to you if we have
anything material to add or to draw attention to in relation to:
Our responsibilities and those of the Directors
the disclosures in the Annual Report that describe those risks

and explain how they are being managed or mitigated.
We have nothing
material to add
or to draw
attention to.
the Directors explanation on page 116 of the Annual Report,

in accordance with provision C.2.2 of the Code, as to how
they have assessed the prospects of the Group, over what
period they have done so and why they consider that period
to be appropriate, and their statement as to whether they
have a reasonable expectation that the Group will be able to
continue in operation and meet its liabilities as they fall due
over the period of their assessment, including any related
disclosures drawing attention to any necessary qualifications
or assumptions.
We have nothing
material to add
or to draw
attention to.
This report, including the opinions, has been prepared for and only
for the Parent Companys members as a body in accordance with
Chapter 3 of Part 16 of the Companies Act 2006 and for no other
purpose. We do not, in giving these opinions, accept or assume
responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
What an audit of financial statements involves
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give reasonable
assurance that the financial statements are free from material
misstatement, whether caused by fraud or error. This includes
anassessment of:
whether the accounting policies are appropriate to the Groups and
the Parent Companys circumstances and have been consistently
applied and adequately disclosed;
Adequacy of accounting records and information and

explanations received
the reasonableness of significant accounting estimates made

bythe directors; and
Under the Companies Act 2006 we are required to report to you if,
inour opinion:
the overall presentation of the financial statements.
we have not received all the information and explanations we

require for our audit; or
the parent company financial statements and the part of the

Directors Remuneration Report to be audited are not in agreement
with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Directors remuneration
Directors Remuneration Report Companies Act 2006 opinion
In our opinion, the part of the Directors Remuneration Report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
Other Companies Act 2006 reporting
Under the Companies Act 2006 we are required to report to you if,
inour opinion, certain disclosures of Directors remuneration specified
by law are not made. We have no exceptions to report arising from
this responsibility.
Corporate governance statement
We test and examine information, using sampling and other

auditing techniques, to the extent we consider necessary to provide
a reasonable basis for us to draw conclusions. We obtain audit
evidence through testing the effectiveness of controls, substantive
procedures or a combination of both.
In addition, we read all the financial and non-financial information
in the Annual Report to identify material inconsistencies with the
audited financial statements and to identify any information that is
apparently materially incorrect based on, or materially inconsistent
with, the knowledge acquired by us in the course of performing the
audit. If we become aware of any apparent material misstatements
orinconsistencies we consider the implications for our report.
Jason Burkitt (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
14 March 2016
Under the Listing Rules we are required to review the part of the
Corporate Governance Statement relating to ten further provisions
ofthe Code. We have nothing to report having performed our review.
Antofagasta plc 121
OTHER INFORMATION
adequate accounting records have not been kept by the parent

company, or returns adequate for our audit have not been received
from branches not visited by us; or
We primarily focus our work in these areas by assessing the

Directors judgements against available evidence, forming
our own judgements, and evaluating the disclosures in the
Under the Listing Rules we are required to review the Directors statement that
they have carried out a robust assessment of the principal risks facing the Group
and the Directors statement in relation to the longer-term viability of the Group.
Our review was substantially less in scope than an audit and only consisted
of making inquiries and considering the Directors process supporting their
statements; checking that the statements are in alignment with the relevant
provisions of the Code; and considering whether the statements are consistent
with the knowledge acquired by us in the course of performing our audit.
We havenothing to report having performed our review.
Our responsibility is to audit and express an opinion on the financial

statements in accordance with applicable law and ISAs (UK &
Ireland). Those standards require us to comply with the Auditing
Practices Boards Ethical Standards for Auditors.
GOVERNANCE
We have nothing
material to add
or to draw
attention to.
As explained more fully in the Directors Responsibilities Statement

set out on page 116, the Directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true
and fair view.
STRATEGIC REPORT
the Directors confirmation on page 35 of the Annual Report,

in accordance with provision C.2.1 of the Code, that they have
carried out a robust assessment of the principal risks facing
the group, including those that would threaten its business
model, future performance, solvency or liquidity.
OVERVIEW
The Directors assessment of the prospects of the Group and of

the principal risks that would threaten the solvency or liquidity
of the Group
Consolidated income statement

2015
$m
2014
(restated)
$m
3,394.6
(3,090.2)
304.4
(5.8)
298.6
18.1
(33.7)
(23.6)
(39.2)
259.4
(160.4)
99.0
5,145.6
(3,562.0)
1,583.6
(4.1)
1,579.5
16.8
(44.4)
(36.3)
(63.9)
1,515.6
(702.3)
813.3
10
602.7
701.7
37.4
850.7
32
11
93.5
608.2
390.9
459.8
US cents
US cents
0.6
61.1
61.7
42.8
3.8
46.6
Notes
Group revenue
Total operating costs
Total profit from operations, associates and joint ventures
Investment income
Interest expense
Other finance items
Net finance expense
Profit before tax
Income tax expense
Profit for the financial year from continuing operations
Profit for the financial year from discontinued operations
Profit for the year
Attributable to:
Owners of the parent
Basic earnings per share

From continuing operations
From discontinued operations
Total continuing and discontinued operations
4,5
4,6
17,4
4,6
8
4
9
4
11
Consolidated statement of comprehensive income

701.7
850.7
26
17
18
1.7
(16.0)
(3.2)
(1.8)
5.8
1.0
(1.3)
(13.8)
(0.2)
(42.0)
(6.1)
(26.2)
2.1
(8.5)
26.3
1.8
(52.8)
28
3.8
(1.2)
2.6
(11.2)
690.5
(17.4)
4.2
(13.2)
(66.0)
784.7
32
90.9
599.6
370.1
414.6
26
26
8
26
Items that will not be subsequently reclassified to profit or loss:

Actuarial gains/(losses) on defined benefit plans
Tax on items recognised directly in equity that will not be reclassified
Total items that will not be subsequently reclassified to profit or loss
Total other comprehensive expense
Total comprehensive income for the year
Attributable to:
Owners of the parent
Consolidated statement of changes in equity

Share capital
$m
Share
premium
$m
Other
reserves
(Note 31)
$m
Retained
earnings
(Note 31)
$m
Net
equity
$m
Noncontrolling
interests
$m
Total
equity
$m
89.8
89.8
89.8
199.2
199.2
199.2
(12.0)
(35.4)
(47.4)
(11.9)
(59.3)
6,447.5
459.8
(9.8)
1.5
(2.7)
(964.2)
5,932.1
608.2
3.3
(127.2)
6,416.4
6,724.5
459.8
(45.2)
1.5
(2.7)
(964.2)
6,173.7
608.2
(8.6)
(127.2)
6,646.1
1,939.1
390.9
(20.8)
(32.0)
(56.7)
2.7
50.0
(412.2)
1,861.0
93.5
(2.6)
(13.3)
14.6
(80.0)
1,873.2
8,663.6
850.7
(66.0)
(30.5)
(56.7)
50.0
(1,376.4)
8,034.7
701.7
(11.2)
(13.3)
14.6
(207.2)
8,519.3
Antofagasta plc 123
OTHER INFORMATION
At 1 January 2014
Comprehensive income for the year
Other comprehensive expense for the year
Change in ownership interest in subsidiaries
Loss of control in subsidiaries
Capital increase in non-controlling interest
Capital contribution from non-controlling interest
Dividends
At 31 December 2014
Comprehensive income for the year
Other comprehensive (expense)/income for the year
Loss of control in subsidiaries
Capital contribution from non-controlling interest
Dividends
At 31 December 2015
GOVERNANCE
2014
$m
STRATEGIC REPORT
2015
$m
OVERVIEW
Profit for the year

Items that may be reclassified subsequently to profit or loss:
Gains/(losses) in fair value of cash flow hedges deferred in reserves
Share of other comprehensive losses of associates and joint ventures, net of tax
Losses in fair value of available-for-sale investments
Currency translation adjustment
Deferred tax effects arising on cash flow hedges deferred in reserves
Losses/(gains) in fair value of cash flow hedges transferred to the income statement
Losses in fair value of available-for-sale investments transferred to income statement
Deferred tax effects arising on amounts transferred to the income statement
Total items that may be reclassified subsequently to profit or loss
Notes

As at 31 December 2015
2015
$m
2014
(Restated)
$m
150.1
8,601.1
2.0
263.9
1,146.6
292.9
2.7
124.6
10,583.9
118.6
8,213.9
2.6
247.8
198.1
239.5
15.6
104.6
9,140.7
297.1
604.8
319.5
0.2
924.1
807.5
2,953.2
13,537.1
382.5
810.3
106.9
0.2
1,529.1
845.4
3,674.4
12,815.1
24
26
25
(758.9)
(2.0)
(478.9)
(198.8)
(1,438.6)
(284.5)
(7.5)
(793.8)
(77.6)
(1,163.4)
24
26
25
28
30
30
(1,996.2)
(1.5)
(24.4)
(86.9)
(394.0)
(1,076.2)
(3,579.2)
(5,017.8)
8,519.3
(2,091.6)
(3.5)
(4.8)
(103.0)
(434.3)
(979.8)
(3,617.0)
(4,780.4)
8,034.7
31
89.8
199.2
(59.3)
6,416.4
6,646.1
1,873.2
8,519.3
89.8
199.2
(47.4)
5,932.1
6,173.7
1,861.0
8,034.7
Notes
Non-current assets
Intangible assets
Property, plant and equipment
Investment property
Inventories
Investment in associates and joint ventures
Trade and other receivables
Available-for-sale investments
Deferred tax assets
Current assets
Inventories
Current tax assets
Liquid investments
Cash and cash equivalents
Total assets
Current liabilities
Short-term borrowings
Trade and other payables
Current tax liabilities
Non-current liabilities
Medium and long-term borrowings
Post-employment benefit obligations
Decommissioning and restoration and other long-term provisions
Deferred tax liabilities
Total liabilities
Net assets
Equity
Share capital
Share premium
Other reserves
Retained earnings
Equity attributable to equity owners of the parent
Total equity
13
14
21
17
22
18
29
21
22
26
23
23
31
31
32
The financial statements on pages 122 to 124 were approved by the Board of Directors on 14 March 2016 and signed on its behalf by
Jean-Paul Luksic
William Hayes
Chairman Director

858.3
(38.6)
(427.1)
392.6
2,507.8
(45.4)
(641.5)
1,820.9
17
20
17
18
8
19
(112.0)
(972.8)
12.1
(0.2)
942.9
(78.0)
1.6
(1,048.5)
605.0
11.0
(638.9)
(125.2)
20.0
(5.9)
(7.6)
1.7
(1,646.3)
542.3
16.5
(1,204.5)
(127.2)
(0.2)
(80.0)
14.6
725.9
(276.4)
(11.9)
244.8
(1.5)
845.4
(1.5)
(36.4)
807.5
(964.2)
(0.2)
(412.2)
50.0
(30.9)
1,583.4
(570.9)
(12.2)
(357.2)
259.2
613.7
259.2
(27.5)
845.4
23
12
12
32
33
33
33
33
33
23,33
33
GOVERNANCE
Cash flows from operations

Interest paid
Income tax paid
Net cash from operating activities
Investing activities
Capital contribution and loan to associates and joint ventures
Acquisition of joint ventures
Dividends from associate
Acquisition of available-for-sale investments
Disposal of subsidiary
Acquisition of mining properties
Cash derecognised due to loss of control of subsidiary
Proceeds from sale of property, plant and equipment
Purchases of property, plant and equipment
Net decrease in liquid investments
Interest received
Net cash used in investing activities
Financing activities
Dividends paid to preference shareholders of the Company
Dividends paid to non-controlling interests
Capital contribution from non-controlling interests
Proceeds from issue of new borrowings
Repayments of borrowings
Repayments of obligations under finance leases
Net cash from/(used) in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Net (decrease)/increase in cash and cash equivalents
Effect of foreign exchange rate changes
Cash and cash equivalents at end of the year
STRATEGIC REPORT
2014
$m
OVERVIEW
2015
$m
Notes
OTHER INFORMATION
Antofagasta plc 125
1 Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) and with those
parts ofthe Companies Act 2006 applicable to companies reporting
under IFRS. Forthese purposes, IFRS comprise the standards issued
by the International Accounting Standards Board (IASB) and IFRS
Interpretations Committee (IFRS IC) that have been endorsed by
the European Union (EU).
The financial statements have been prepared on the going concern
basis. Details of the factors which have been taken into account in
assessing the Groups going concern status are set out within the
Directors Report.
Significant events during 2015 and 2014
Construction of the Antucoya project was completed during 2015
and the project is currently in its initial start-up phase during which
final commissioning activities are being performed to ensure that
the operations assets are capable of operating in the manner
intended by management. During this initial start-up period, all
costs of the Antucoya operation, along with related revenues,
arebeing capitalised.
On 1 December 2015, the Group completed the agreement with
Barrick Gold Corporation (Barrick) under which Antofagasta
acquired a 50% interest in Compaia Minera Zaldvar SpA
(Zaldvar), and has accounted for its 50% interest in Zaldvar
asajoint venture from that date.
The Group completed the sale of its water division, Aguas de
Antofagasta S.A. to Empresas Publicas de Medellin, on 2 June, 2015
and the sale of its transport operation in Bolivia, Empresa Ferroviaria
Andina (FCA), to Kimarcus Group Corp on 28 August, 2015.
In these financial statements the net results of the water division
forthe five months to May 2015 and of the FCA for the eight months
to August 2015, are shown in the income statement on the line for
Profit for the period from discontinued operations. The comparative
results for the prior year have been restated in order to present the
comparative net result on the Profit for the period from discontinued
operations line.
In January 2015, the Group completed its acquisition of Duluth Metals
Limited (Duluth). As a result of the acquisition, the Group now has a
100% interest in Twin Metals Minnesota Limited (TwinMetals) and
therefore it has been consolidated as a subsidiary of the Group from
that date.
A reclassification between property, plant and equipment and
current inventories has been made in the prior period comparative
figures related to Ferrocarril Antofagasta Bolivia (FCAB). This has
resulted in an increase in current inventories and a corresponding
decrease in property, plant and equipment of $13.2 million as at
31 December 2014.
During 2014, the Group merged Minera Esperanza and Minera
ElTesoro into a single entity Minera Centinela. The production of
copper concentrate, which was previously within Minera Esperanza,
is now referred to as Centinela Concentrates, and the production of
copper cathodes, which was previously within Minera El Tesoro, is
referred to as Centinela Cathodes.
a) Adoption of new accounting standards

The following accounting standards, amendments and interpretations
became effective in the current reporting period:
Annual improvements 20112013 Cycle improvements to
four IFRSs
IFRIC 21 Levies
The application of these standards and interpretations, effective for
the first time in the current year, has had no significant impact on the
amounts reported in these financial statements.
b) Accounting standards issued but not yet effective
At the date of authorisation of these financial statements, the
following Standards and Interpretations which have not been applied
in these financial statements were in issue but not yet effective:
IFRS 9 Financial Instruments
IFRS 14 Regulatory Deferral Accounts
IFRS 15Revenue from Contracts with Customers
IFRS 16 Leases
IAS 19 Defined Benefit Plans, Employee Contributions
(Amendments to IAS 19)
Annual improvements 20102012 Cycle improvements
tosix IFRSs
Accounting for Acquisitions of Interests in Joint Operations
(Amendments to IFRS 11)
Clarification of Acceptable Methods of Depreciation and
Amortisation (Amendments to IAS 16 and IAS 38)
Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41)
Equity Method in Separate Financial Statements (Amendments
toIAS 27)
Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)
Investment Entities: Applying the Consolidation Exception
(Amendments to IFRS 10, IFRS 12 and IAS 28)
Disclosure Initiative (Amendments to IAS 1)
Annual improvements 20122014 Cycle improvements to
four IFRSs
Recognition of Deferred Tax Assets for Unrealised Losses
(Amendments to IAS 12)
Disclosure Initiative (Amendments to IAS 7)
The Group is continuing to evaluate the impact of adopting these
newstandards and interpretations.
The Group is continuing to evaluate in detail the potential impact of
IFRS 9 Financial Instruments and IFRS 15 Revenue from contracts
with customers but does not currently expect these to have a material
impact. In respect of IFRS 16 Leases the Group is not ableto estimate
the impact of the new rules on the Groups financial statements.
The Group will make more detailed assessments ofthe impact.
a) Accounting convention
These financial statements have been prepared under the historical
cost convention as modified by the use of fair values to measure
certain financial instruments, principally provisionally priced sales as
explained in Note 2(f) and financial derivative contracts as explained
inNote 2(x).
The financial statements comprise the consolidated financial
statements ofAntofagasta plc (the Company) and its subsidiaries
(collectively theGroup).
An associate is an entity over which the Group is in a position to

exercise significant influence, but not control or joint control, through
the power toparticipate in the financial and operating policy decisions
of that entity. The results and assets and liabilities of associates are
incorporated in these consolidated financial statements using the
equity method of accounting. This requires recording the investment
initially at cost to the Group and then, in subsequent periods, adjusting
the carrying amount of the investment to reflect the Groups share of
the associates results less any impairment and any other changes to
the associates net assets such as dividends. When the Group loses
control of a former subsidiary but retains an investment in associate
in that entity, the initial carrying value of the investment in associate
is recorded at its fair value at that point. When the Groups share of
losses of an associate exceeds the Groups interest in that associate,
the Group discontinues recognising its share of further losses.
Additional losses are recognised only to the extent that the Group
hasincurred legal or constructive obligations or made payments
onbehalf oftheassociate.
Antofagasta plc 127
OTHER INFORMATION
Changes in the Groups ownership interests in subsidiaries that

do not result in the Group losing control over the subsidiaries are
accounted for as equity transactions. The carrying amounts of the
Groups interests and the non-controlling interests are adjusted
toreflect the changes in their relative interests in the subsidiaries.
Any difference between the amount by which the non-controlling
interests are adjusted and the fair value of the consideration paid
orreceived is recognised directly in equity and attributed to owners
ofthe Company.
c) Investments in associates
Non-controlling interests that are present ownership interests

and entitle their holders to a proportionate share of the entitys
net assets in the event of liquidation, may be initially measured
either at fair value or at thenon-controlling interests proportionate
share of the recognised amounts of the acquirees identifiable
net assets. The choice of measurement basis is made on an
acquisitionbyacquisition basis. Other types of non-controlling
interests are measured at fair value or, when applicable, on the
basis specified in another IFRS. Subsequent toacquisition, the
carrying amount ofnon-controlling interests is the amount of those
interests at initial recognition plus the non-controlling interests
shareof subsequent changes in equity. Total comprehensive
incomeisattributed to noncontrolling interests even if this results
inthe noncontrolling interests having a deficit balance.
Acquisitions and disposals are treated as explained in Note 2(g)

relating to business combinations and goodwill.
GOVERNANCE
(i) Subsidiaries A subsidiary is an entity over which the Group

has control, which is the case when the Group is exposed to,
or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power
over the entity. The consolidated financial statements include all
the assets, liabilities, revenues, expenses and cash flows of the
Company and its subsidiaries after eliminating inter-company
balances and transactions. For partly-owned subsidiaries,
thenet assets and net earnings attributable to non-controlling
shareholders are presented as Non-controlling interests in the
consolidated balance sheet and consolidated income statement.
STRATEGIC REPORT
b) Basis of consolidation
When the Group loses control of a subsidiary, a gain or loss is

recognised in profit or loss and is calculated as the difference
between (i) the aggregate of the fair value of the consideration
received and the fair value of any retained interest and (ii) the
previouscarrying amount of the assets (including goodwill),
and liabilities of the subsidiary and any non-controlling interests.
When assets of the subsidiary are carried at revalued amounts
or fairvalues and the related cumulative gain or loss has been
recognised in other comprehensive income and accumulated in
equity, the amounts previously recognised in other comprehensive
income and accumulated in equity are accounted for as if the Group
had directly disposed of the relevant assets (ie reclassified to profit
or loss or transferred directly to retained earnings as specified by
applicable IFRSs). The fair value of any investment retained in the
former subsidiary at the date when control is lost is regarded as
the fair value on initial recognition for subsequent accounting under
IAS39 Financial Instruments: Recognition and Measurement or,
when applicable, the cost on initial recognition of an investment
inanassociate or a joint venture.
OVERVIEW
2 Principal accounting policies
2 Principal accounting policies continued

d) Joint arrangements
A joint arrangement is an arrangement of which two or more parties
have joint control. Joint arrangements are accounted depending on
the nature of the arrangement.
(i) Joint ventures are accounted for using equity method in
accordance with IAS 28 Investment in Associates and Joint
Ventures as described in Note 2(c).
(ii) Joint operations are accounted for recognising directly the
assets, obligations, revenues and expenses of the joint operator
in the joint arrangement. The assets, liabilities, revenues and
expenses are accounted for in accordance with the relevant IFRS.
When a Group entity transacts with its joint arrangements, profits and
losses resulting from the transactions with the joint arrangements are
recognised in the Groups consolidated financial statements only to
the extent of interests in the joint arrangements that are not related
tothe Group.
e) Currency translation
The functional currency for each entity in the Group is determined
as thecurrency of the primary economic environment in which
it operates. Transactions in currencies other than the functional
currency of the entity aretranslated at the exchange rate ruling at the
date of the transaction. Monetary assets and liabilities denominated
incurrencies other than the functional currency are retranslated
at year end exchange rates. Gains and losses on retranslation are
included in net profit or loss for the period within other finance items.
The presentational currency of the Group and the functional
currency of the Company is the US dollar. On consolidation, income
statement items for entities with a functional currency other than the
US dollar are translated into US dollars at average rates of exchange.
Balance sheet items are translated at period-end exchange rates.
Exchange differences on translation of the net assets of such entities
are taken to equity and recorded in a separate currency translation
reserve. Cumulative translation differences arising after the transition
date to IFRS are recognised as income or as expenses in the income
statement in the period in which an operation is disposed of.
On consolidation, exchange gains and losses which arise on balances
between Group entities are taken to reserves where that balance
is, in substance, part of the net investment in a foreign operation,
ie where settlement is neither planned nor likely to occur in the
foreseeable future. Allother exchange gains and losses on Group
balances are dealt with in theincome statement.
Fair value adjustments and any goodwill arising on the acquisition of a
foreign entity are treated as assets of the foreign entity and translated
at theperiod-end rate.
f) Revenue recognition
Revenue represents the value of goods and services supplied to
third parties during the year. Revenue is measured at the fair value
of consideration received or receivable, and excludes any applicable
sales tax.
A sale is recognised when the significant risks and rewards of
ownership have passed. This is generally when title and any
insurance risk has passed to the customer, and the goods have
beendelivered to a contractually agreed location or when any
services have been provided.
Revenue from mining activities is recorded at the invoiced amounts
with anadjustment for provisional pricing at each reporting date, as
explained below. For copper and molybdenum concentrates, which
are sold to smelters and roasting plants for further processing, the
invoiced amount isthe market value of the metal payable by the
customer, net of deductions fortolling charges. Revenue includes
amounts from the sale of by-products.
Copper and molybdenum concentrate sale agreements and copper
cathode sale agreements generally provide for provisional pricing
of sales atthe time of shipment, with final pricing based on the
monthly average London Metal Exchange (LME) copper price or
the monthly average market molybdenum price for specified future
periods. This normally ranges from one to five months after delivery
to the customer. Such a provisional sale contains an embedded
derivative which is required to be separated from thehost contract.
The host contract is the sale of metals contained in the concentrate
or cathode at the provisional invoice price less tolling charges
deducted, and the embedded derivative is the forward contract for
which the provisional sale is subsequently adjusted. At each reporting
date, the provisionally priced metal sales together with any related
tolling charges are marked-to-market, with adjustments (both gains
and losses) being recorded in revenue in the consolidated income
statement and in trade debtors in the balance sheet. Forward prices
at the period end are used for copper concentrate and cathode
sales, while period-end average prices are used for molybdenum
concentrate sales due to the absence of a futures market.
Interest income is accrued on a time basis, by reference to the
principal outstanding and the effective interest rate applicable,
whichis the rate that exactly discounts estimated future cash
receiptsthrough the expected life of the financial asset to that
assetsnet carrying amount.
Dividend income from available-for-sale investments and associates
isrecognised when the shareholders right to receive payment has
beenestablished.
h) Exploration and evaluation expenditure

Exploration and evaluation costs, other than those incurred in
acquiring exploration licences, are expensed in the year in which
they are incurred. When a mining project is considered to be
commercially viable (normally when the project has completed a
pre-feasibility study, and the start of a feasibility study has been
approved) all further directly attributable pre-production expenditure
iscapitalised. Capitalisation of pre-production expenditure ceases
when commercial levels of production are achieved.
Costs incurred in acquiring exploration licences are accounted for
as mining properties included in property, plant and equipment in
accordance with the policy in Note 2(k) and are stated atcost less
accumulated amortisation.
If the initial accounting for a business combination is incomplete

bythe end of the reporting period in which the combination occurs,
the Group reports provisional amounts for the items for which the
accounting is incomplete. Those provisional amounts are adjusted
during the measurement period (see above), or additional assets or
liabilities are recognised, to reflect new information obtained about
facts and circumstances that existed at the acquisition date that, if
known, would have affected the amounts recognised at that date.
Antofagasta plc 129
OTHER INFORMATION
When a business combination is achieved in stages, the Groups

previously held equity interest in the acquiree is remeasured to fair
value at the acquisition date (ie the date when the Group obtains
control) and the resulting gain or loss, if any, is recognised in profit
or loss. Amounts arising from interests in the acquiree prior to
the acquisition date that have previously been recognised in other
comprehensive income are reclassified to profit or loss where such
treatment would be appropriate if that interest were disposed of.
The results of businesses sold during the year are included in the
consolidated financial statements for the period up to the effective
date ofdisposal. Gains or losses on disposal are calculated as the
difference between the sales proceeds (net of expenses) and the
net assets attributable to the interest which has been sold. Where a
disposal represents a separate major line of business or geographical
area of operations, the net results attributable to the disposed entity
are shown separately in the income statement.
The subsequent accounting for changes in the fair value of the

contingent consideration that do not qualify as measurement
period adjustments depends on how the contingent consideration
is classified. Contingent consideration that is classified as equity is
not remeasured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Contingent consideration
that is classified as an asset or a liability is remeasured at subsequent
reporting dates in accordance with IAS 39, orIAS 37 Provisions,
Contingent Liabilities and Contingent Assets, asappropriate.
The Group often enters into earn-in arrangements whereby the

Group acquires an interest in a project company in exchange for
funding exploration and evaluation expenditure up to a specified
level of expenditure or a specified stage in the life of the project.
Funding is usually conditional onthe achievement of key milestones
by the partner. Typically there is no consideration transferred or
funding liability on the effective date of acquisition of the interest in
the project company and no goodwill is recognised on this type of
business combination.
GOVERNANCE
When the consideration transferred by the Group in a business

combination includes assets or liabilities resulting from a contingent
consideration arrangement, the contingent consideration is
measured at its acquisition-date fair value and included as part of the
consideration transferred in abusiness combination. Changes in the
fair value of the contingent consideration that qualify as measurement
period adjustments are adjusted retrospectively, with corresponding
adjustments against goodwill. Measurement period adjustments are
adjustments that arise from additional information obtained during
the measurement period (which cannot exceed one year from the
acquisition date) about facts and circumstances that existed at the
acquisition date.
Goodwill arising in a business combination is measured as the

excess of thesum of the consideration transferred, the amount
of any non-controlling interest in the acquiree and the fair value of
the acquirers previously held equity interest in the acquiree (if any)
over the next identifiable assets acquired and liabilities assumed.
Any goodwill on the acquisition of subsidiaries is separately disclosed,
while any goodwill on the acquisition ofassociates is included
within investments in equity accounted entities. Internally generated
goodwill is not recognised. Where the fair values of theidentifiable
net assets acquired exceed the sum of the consideration transferred,
the surplus is credited to the profit or loss in the period of acquisition
as a bargain purchase gain.
STRATEGIC REPORT
Acquisitions of businesses are accounted for using the acquisition

method. The consideration transferred in a business combination
is measured at fair value, which is calculated as the sum of the
acquisition-date fair values of theassets transferred by the Group,
liabilities incurred by the Group to the former owners of the acquiree
and the equity interests issued by the Group in exchange for control
of the acquiree. The results of businesses acquired during the year
are brought into the consolidated financial statements fromthe
effective date of acquisition. The identifiable assets, liabilities
andcontingent liabilities of a business which can be measured reliably
arerecorded at their provisional fair values at the date of acquisition.
Provisional fair values are finalised within 12 months of the acquisition
date.Acquisition-related costs are expensed as incurred.
OVERVIEW
g) Business combinations and goodwill

i) Stripping costs
Pre-stripping and operational stripping costs are incurred in the course
ofthe development and operation of open-pit mining operations.
Pre-stripping costs relate to the removal of waste material as part of
the initial development of an open-pit, in order to allow access to the
ore body. These costs are capitalised within mining properties within
property, plant and equipment. The capitalised costs are depreciated
once production commences on a unit of production basis,
inproportion to the volume of ore extracted in the year compared
with total proven and probable reserves for that pit at the beginning
ofthe year.
Operational stripping costs relate to the costs of extracting waste
material as part of the ongoing mining process. The ongoing
mining and development of the Groups open-pit mines is generally
performed via a succession of individual phases. The costs of
extracting material from an open-pit mine are generally allocated
between ore and waste stripping in proportion to the tonnes of
material extracted. The waste stripping costs are generally absorbed
into inventory and expensed as that inventory is processed and sold.
Where the stripping costs relate to a significant stripping campaign
which is expected to provide improved access to an identifiable
component of the ore body (typically an individual phase within the
overall mine plan), the costs of removing waste in order to improve
access to that part of the ore body will be capitalised within mining
properties within property, plant and equipment. The capitalised costs
will then be amortised on a unit of production basis, in proportion to
the volume of ore extracted compared with the total ore contained
inthe component of the pit to which the stripping campaign relates.
j) Intangible assets
Intangible assets with finite useful lives that are acquired separately
are carried at cost less accumulated amortisation and accumulated
impairment losses. Intangible assets include the cost of acquiring
exploration licences. Amortisation is recognised on a straight-line
basis over their estimated useful lives. The estimated useful life
and amortisation method are reviewed at the end of each reporting
period, with the effect of any changes in estimate being accounted
for on a prospective basis. Intangible assets with indefinite useful
lives that are acquired separately are carried at cost less accumulated
impairment losses.
Intangible assets acquired in a business combination and recognised
separately from goodwill are initially recognised at their fair value at
the acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible assets acquired in
a business combination are reported at cost less accumulated
amortisation and accumulated impairment losses, on the same
basisas intangible assets thatare acquired separately.
An intangible asset is derecognised on disposal, or when no future
economic benefits are expected from use or disposal. Gains or
losses arising from derecognition of an intangible asset, measured
asthe difference between the net disposal proceeds and the carrying
amount of the asset, are recognised in profit or loss when the asset
is derecognised.
k) Property, plant and equipment

The costs of mining properties and leases, which include the costs
ofacquiring and developing mining properties and mineral rights, are
capitalised as property, plant and equipment in the year in which they
areincurred, when a mining project is considered to be commercially
viable (normally when the project has completed a pre-feasibility
study, and the start of a feasibility study has been approved). The cost
of property, plant and equipment comprises the purchase price and
any costs directly attributable to bringing the asset to the location and
condition necessary for it to be capable of operating in the manner
intended. Once a project has been established as commercially
viable, related development expenditure is capitalised. This includes
costs incurred in preparing the site for mining operations, including
pre-stripping costs. Capitalisation ceases when the mine is capable
of commercial production, with the exception of development costs
which give rise to a future benefit.
Interest on borrowings related to construction or development of
projects is capitalised, until such time as the assets are substantially
ready for their intended use or sale which, in the case of mining
properties, is when they are capable of commercial production.
l) Depreciation of property, plant and equipment and
amortisation of intangible assets
Property, plant and equipment is depreciated over its useful life,
or over theremaining life of the operation if shorter, to residual
value. The major categories of property, plant and equipment are
depreciated as follows:
(i) Land freehold land is not depreciated unless the value of
the land is considered to relate directly to a particular mining
operation, in which case the land is depreciated on a straightline basis over the expected mine life. Any leasehold land is
depreciated on a straight-line basis over the life of the lease.
(ii) Mining properties mining properties, including capitalised
financing costs, are depreciated on a unit of production
basis, inproportion to thevolume of ore extracted in the year
comparedwith total proven and probable reserves at the
beginning of the year.
(iii) Buildings and infrastructure straight-line basis over 10
to25 years.
(iv) Railway track (including trackside equipment) straight-line
basis over 20 to 25 years.
(v) Wagons and rolling stock straight-line basis over 10 to
20 years.
(vi) Machinery, equipment and other assets are depreciated
onaunit of production basis, in proportion to the volume of
ore/material processed or straight-line basis over 5to20 years.
(vii) Assets under construction no depreciation until asset is
available foruse.
(viii) Assets held under finance lease are depreciated over the
shorter ofthe lease term andtheir useful life.
Residual values and useful lives are reviewed, and adjusted if
appropriate, atleast annually, and changes to residual values and
useful lives are accounted for prospectively.
The concession right is amortised on a straight-line basis over the life
of the concession, or the useful life of any component part if less.
Investment property is property held to earn rentals and/or for capital

appreciation and includes land held for a currently undetermined
future use. The Group has elected to adopt the cost model in IAS 40
Investment Property. Accordingly, investment property is measured
initially at cost, which includes transaction costs for the acquisition of
the property and, asdetailed in Note 2(l) relating to property, plant and
equipment, is notdepreciated.
o) Inventory
Inventory consists of raw materials and consumables, work-inprogress and finished goods. Work-in-progress represents material
that is in the process of being converted into finished goods.
The conversion process for mining operations depends on the nature
of the copper ore. For sulphide ores, processing includes milling and
concentrating and results in the production of copper concentrate.
For oxide ores, processing includes leaching of stockpiles, solution
extraction and electrowinning and results in the production of copper
cathodes. Finished goods consist of copper concentrate containing
gold and silver at Los Pelambres and Centinela and copper cathodes
at Centinela, Antucoya and Michilla. Los Pelambres also produces
molybdenum as a by-product.
Stockpiles represent ore that is extracted and is available for further

processing. Costs directly attributable to the extraction of ore are
generally allocated as part of production cost in proportion to the
tonnes of material extracted. Operational stripping costs are generally
absorbed into inventory, and therefore expensed as that inventory
isprocessed and sold. If ore will not be processed within 12 months
of the statement of financial position date, it is included within
non-current assets. If there is significant uncertainty as to when
anystockpiled ore will be processed, it is expensed as incurred.
p) Taxation
Tax expense comprises the charges or credits for the year relating
toboth current and deferred tax.
Current tax is based on taxable profit for the year. Taxable profit may
differ from net profit as reported in the income statement because it
excludes items of income or expense that are taxable and deductible
in different years and also excludes items that are not taxable or
deductible. The liability for current tax is calculated using tax rates
foreach entity in the consolidated financial statements which have
been enacted or substantively enacted at the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable
on temporary differences (ie differences between the carrying
amount of assets and liabilities in the financial statements and the
corresponding tax basis used inthe computation of taxable profit).
Deferred tax is accounted for using the balance sheet liability method
and is provided on all temporary differences with certain limited
exceptions as follows:
(i) tax payable on undistributed earnings of subsidiaries, associates
and joint ventures is provided except where the Group is able to
control the remittance of profits and it is probable that there will
be no remittance ofpast profits earned in the foreseeable future;
(ii) deferred tax is not provided on the initial recognition of an
asset or liability in a transaction that does not affect accounting
profit ortaxable profit and is not a business combination; nor is
deferred tax provided on subsequent changes in the carrying
value of such assets and liabilities, for example where they are
depreciated; and
(iii) the initial recognition of any goodwill.
Deferred tax assets are recognised only to the extent that it is
probable that they will be recovered through sufficient future taxable
profit. The carrying amount of deferred tax assets is reviewed at each
balance sheet date.
Deferred tax is calculated at the tax rates that are expected to apply
in the period when the liability is settled or the asset is realised.
Deferred tax is charged or credited in the income statement,
exceptwhen it relates to items charged or credited directly to equity,
in which case the deferred tax is also taken directly to equity.
Antofagasta plc 131
OTHER INFORMATION
n) Investment property
an appropriate portion of production overheads.
If the recoverable amount of an asset or cash-generating unit

is estimated to be less than its carrying amount, the carrying
amount is reduced to the recoverable amount. An impairment
charge is recognised in the income statement immediately.
Where an impairment subsequently reverses, the carrying amount
is increased to the revised estimate of recoverable amount, but so
that the increased carrying amount does not exceed the carrying
value that would have been determined if no impairment had
previously been recognised. A reversal is recognised in the income
statement immediately.
depreciation of plant, equipment and mining properties directly

involved inthe production process; and
GOVERNANCE
Recoverable amount is the higher of fair value less costs of disposal

and value in use. Fair value less costs of disposal reflects the net
amount the Group would receive from the sale of the asset in an
orderly transaction between market participants. For mining assets
this would generally be determined based on the present value of
the estimated future cash flows arising from the continued use,
further development or eventual disposal of the asset. The estimates
used in determining the present value of those cash flows are those
that an independent market participant would consider appropriate.
Value in use reflects the present value of the future cash flows which
the Group would expect to derive from continued use of the asset
in its current condition, discounted using a pre-tax discount rate that
reflects current market assessments of the time value of money
and the risks specific to the asset for which estimates of future
cashflows have not been adjusted.
labour costs, raw material costs and other costs directly attributable
to the extraction and processing of ore;
STRATEGIC REPORT
Property, plant and equipment and finite life intangible assets are
reviewed for impairment if there is any indication that the carrying
amount may not be recoverable. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine
the extent of the impairment (if any). Where the asset does not
generate cash flows that are independent from other assets, the
Group estimates the recoverable amount of the cash-generating unit
to which the asset belongs. Any intangible asset with an indefinite
useful life is tested for impairment annually and whenever there is
anindication that the asset may be impaired.
Inventory is valued at the lower of cost, on a weighted average basis,

and net realisable value. Net realisable value represents estimated
selling price less all estimated costs of completion and costs to be
incurred in marketing, selling and distribution. Cost of finished goods
and work-in-progress is production cost and for raw materials and
consumables it is purchase price. Production cost includes:
OVERVIEW
m) Impairment of property, plant and equipment

andintangibleassets (excluding goodwill)

q) Provisions
Provisions are recognised when the Group has a present obligation
(legal or constructive) as a result of a past event, it is probable that the
Group will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at the end of
the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the
cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows (when the effect
ofthe time value of money is material).
the projected unit credit method, which are regularly updated.

The obligation recognised in the balance sheet represents the present
value of the severance indemnity obligation. Actuarial gains and
losses are immediately recognised in other comprehensive income.
u) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits held on
call with banks, highly liquid investments that are readily convertible
into known amounts of cash and which are subject to insignificant
risk of changes in value, net of bank overdrafts which are repayable
on demand. Cash and cash equivalents normally have a maturity
period of 90 days or less.
v) Liquid investments
When some or all of the economic benefits required to settle

aprovision are expected to be recovered from a third party,
areceivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable
canbe measured reliably.
Liquid investments represent highly liquid current asset investments

that donot meet the IAS 7 definition of cash and cash equivalents,
normally because even if readily accessible, the underlying
investments have an average maturity profile greater than 90 days
from the date first entered into. These assets are designated as fair
value through profit or loss.
r) Provisions for decommissioning and restorationcosts
w) Leases
An obligation to incur decommissioning and restoration costs occurs

when environmental disturbance is caused by the development or
ongoing production of a mining property. Costs are estimated on the
basis of a formal closure plan and are subject to regular formal review.
Rental costs under operating leases are charged to the income

statement account in equal annual amounts over the term of
the lease.
Such costs arising from the installation of plant and other site
preparation work, discounted to their net present value, are provided
and capitalised atthe start of each project, as soon as the obligation
to incur such costs arises. These decommissioning costs are charged
against profits over the life of the mine, through depreciation of the
asset and unwinding or amortisation of the discount on the provision.
Depreciation is included in operating costs while the unwinding of the
discount is included as financing costs. Changes in the measurement
of a liability relating to the decommissioning of plant or other site
preparation work are added to, or deducted from, the cost of the
related asset in the current year.
The costs for restoration of site damage, which is created on an
ongoing basis during production, are provided for at their net present
values and charged against operating profits as extraction progresses.
Changes in the measurement of a liability relating to site damage
created during production is charged against operating profit.
s) Share-based payments
For cash-settled share-based payments, a liability is recognised for
the goods or services acquired, measured initially at the fair value
of the liability. At the end of each reporting period until the liability
is settled, and at the date of settlement, the fair value of the liability
is remeasured, with any changes in fair value recognised in profit
or lossfor the year. The Group currently does not have any equity
sharebased payments to employees or third parties.
t) Post-employment benefits
The Group operates defined contribution schemes for a limited
number ofemployees. For such schemes, the amount charged to
theincome statement is the contributions paid or payable in the year.
Employment terms may also provide for payment of a severance
indemnity when an employment contract comes to an end. This is
typically at the rate of one month for each year of service (subject in
most cases to a cap as to the number of qualifying years of service)
and based on final salary level. Theseverance indemnity obligation
is treated as an unfunded defined benefit plan, and the calculation
is based on valuations performed by an independent actuary using
Assets under finance leases are recognised as assets of the Group at

inception of the lease at the lower of fair value or the present value of
the minimum lease payments derived by discounting at the interest
rate implicit in the lease. The interest element is charged within
financing costs so as toproduce a constant periodic rate of interest
on the remaining balance oftheliability.
x) Other financial instruments
Financial assets and financial liabilities are recognised on the Groups
balance sheet when the Group becomes a party to the contractual
provisions of the instrument.
(i) Investments Investments which are not subsidiaries,
associates or joint ventures are initially measured at cost,
including transaction costs.

Investments are classified as either held for trading or availablefor-sale, and are normally measured at subsequent reporting
dates at fair value. Fair value is determined in the manner
described in Note 26(b). Investments in equity instruments
that do not have a quoted market price in an active market and
whose fair value cannot be reliably measured are measured at
cost. Securities are classified as held-for-trading when they are
acquired principally for the purpose of sale in the short term, and
gains and losses arising from changes in fair value are included in
profit or loss for the period. Other investments are classified as
available-for-sale, and gains and losses arising from changes in
fair value are recognised directly in equity, within the Fair value
reserve, until the security is disposed of or is determined to be
impaired, at which time the cumulative gain or loss previously
recognised in equity is included in profit or loss for the period.
Dividends on available-for-sale and held-for-trading equity
investments are recognised in the income statement when
theright to receive payment is established.
(ii) Trade and other receivables Trade and other receivables do

not generally carry any interest and are normally stated at their
nominal value less any impairment. Impairment losses on trade
receivables are recognised within an allowance account unless
the Group considers that no recovery of the amount is possible,
in which case the carrying value of the asset is reduced directly.
The sterling-denominated preference shares issued by

theCompany carry a fixed rate of return without the right to
participate in any surplus. They are accordingly classified within
borrowings and translated into US dollars at period-end rates
of exchange. Preference share dividends are included within
finance costs.
With the exception of available-for-sale equity instruments, if, in a

subsequent period, the amount of the impairment loss decreases
and the decrease can be related objectively to an event occurring
after the impairment was recognised, the previously recognised
impairment loss is reversed through profit or loss immediately to
the extent that the carrying amount of the investment at the date
the impairment is reversed does not exceed what the amortised
cost would have been had the impairment not been recognised.
In respect of available-for-sale equity instruments, any increase in
fair value subsequent to an impairment loss is recognised directly
in equity.
y) Rounding
All amounts disclosed in the financial statements and notes have
been rounded off to the nearest one hundred thousand dollars unless
otherwise stated.
These policies have been consistently applied to all the years
presented, unless otherwise stated.
3 Critical accounting judgements and

keysourcesofestimation uncertainty
Determining many of the amounts included in the financial
statements involves the use of judgement and/or estimation.
These judgements and estimates are based on managements
best knowledge of the relevant facts and circumstances having
regard to prior experience, but actual results may differ from the
amounts included in the financial statements. Information about
suchjudgements and estimates is included in the principal
accountingpolicies in Note 2 or the other notes to the financial
statements, and the key areas are set out below.
a) Capitalisation of property, plant and equipment
andofproject costs
As explained in Note 2(k), the costs of developing mining properties
are capitalised as property, plant and equipment in the year in which
they are incurred, when the mining project is considered to be
commercially viable. Management reviews amounts capitalised to
ensure that the treatment of that expenditure as capital rather than
operating expenditure is reasonable, in particular in respect of the
commercial viability of the project. Commercial viability is normally
considered to be demonstrable when the project has completed
a pre-feasibility study, and the start of a feasibility study has
been approved.
Antofagasta plc 133
OTHER INFORMATION
(vi) Derivative financial instruments As explained in Note 26(d),

the Group uses derivative financial instruments to reduce
exposure to foreign exchange, interest rate and commodity
price movements. The Group does not use such derivative
instruments for trading purposes. The Group has applied the
hedge accounting provisions of IAS 39 Financial Instruments:
Recognition and Measurement. The effective portion of
changes in the fair value of derivative financial instruments
that are designated and qualify as hedges of future cash flows
have been recognised directly in equity, with such amounts
subsequently recognised in profit or loss in the period when
the hedged item affects profit or loss. Any ineffective portion
is recognised immediately in profit or loss. Realised gains
and losses on commodity derivatives recognised in profit
orloss are recorded within revenue. The time value element
of changes in the fair value of derivative options is excluded
from the designated hedging relationship, and is therefore
recognised directly in profit or loss within other finance items.
Derivatives embedded in other financial instruments or other
hostcontracts are treated as separate derivatives when their
risks and characteristics are not closely related to those of
host contracts and the host contracts are not carried at fair
value. Changes in fair value are reported in profit or loss for
the year. The treatment of embedded derivatives arising from
provisionally-priced commodity sales contracts is set out
infurther detail in Note 2(f) relating to revenue.
(v) Equity instruments Equity instruments issued are

recorded at the proceeds received, net of direct issue
costs. Equity instruments of the Company comprise its
sterlingdenominated issued ordinary share capital and related
share premium. As explained in Note 2(e), the presentational
currency of the Group and the functional currency of the
Company is US dollars, and ordinary share capital and share
premium are translated into US dollars at historical rates
ofexchange based ondates of issue.
The carrying amount of the financial asset is reduced by the

impairmentloss directly for all financial assets with the exception
oftrade receivables.
GOVERNANCE
STRATEGIC REPORT
(iv) Borrowings (loans and preference shares) Interest-bearing

loans and bank overdrafts are initially recorded at the proceeds
received, net of direct issue costs. They are subsequently
measured at amortised cost using the effective interest method,
with interest expense recognised on an effective yield basis.
The effective interest method is amethod of calculating the
amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash payments
through the expected life of the financial liability, or, where
appropriate, a shorter period. Finance charges, including
premiums payable on settlement or redemption and direct issue
costs, are accounted for on an accruals basis using the effective
interest rate method. Amounts are either recorded as financing
costs in profit or loss or capitalised in accordance with the
accounting policy set out in Note 2(k). Finance charges are added
to the carrying amount of the instrument to the extent that they
are not settled in the period in which they arise.
(vii) Impairment of financial assets Financial assets, other

than those at fair value through profit or loss, are assessed
for indicators of impairment at each balance sheet date.
Financial assets are impaired where there is objective evidence
that as a result of one or more events that occurred after the
initial recognition of the financial asset the estimated future
cash flows of the investment have been impacted. Forloans
and receivables, the amount of the impairment is the difference
between the assets carrying value and the present value of
estimated future cash flows, discounted at the original effective
interest rate. Any impairment loss is recognised in profit or
loss immediately.
OVERVIEW
(iii) Trade and other payables Trade and other payables are
generally not interest-bearing and are normally stated at their
nominal value.
3 Critical accounting judgements and key

sourcesofestimation uncertainty continued
b) Useful economic lives of property, plant and equipment
andore reserves estimates
As explained in Note 2(l), mining properties, including capitalised
financing costs, are depreciated in proportion to the volume of
ore extracted in the year compared with total proven and probable
reserves at the beginning of the year.
There are numerous uncertainties inherent in estimating ore reserves,
and assumptions that were valid at the time of estimation may
change when new information becomes available. These include
assumptions as to grade estimates and cut-off grades, recovery rates,
commodity prices, exchange rates, production costs, capital costs,
processing and reclamation costs and discount rates. The actual
volume of ore extracted and any changes in these assumptions
couldaffect prospective depreciation rates and carrying values.
The majority of other items of property, plant and equipment are
depreciated on a straight-line basis over their useful economic lives.
Management reviews the appropriateness of useful economic lives
at least annually and, again, any changes could affect prospective
depreciation rates and asset carrying values.
c) Impairment of assets
As explained in Note 2(m), the Group reviews the carrying value of
its intangible assets and property, plant and equipment to determine
whether there is any indication that those assets are impaired.
In making assessments for impairment, assets that do not generate
independent cashflows are allocated to an appropriate cashgenerating unit (CGU). Therecoverable amount of those assets,
or CGU, is measured at the higher of their fair value less costs to sell
and value in use. Details of the impairment reviews undertaken as at
31 December 2015 are set out in Note 15.
Management necessarily applies its judgement in allocating
assets to CGUs, in estimating the probability, timing and value
of underlying cash flows and inselecting appropriate discount
rates to be applied within the fair value less cost to dispose
calculation. The key assumptions are set out in Note 2(m) and
Note 15. Subsequent changes to CGU allocation, licensing status,
reserves and resources, price assumptions or other estimates and
assumptions in thefair value less cost to dispose calculation could
impact the carrying value of the respectiveassets.
d) Provisions for decommissioning and site restorationcosts
As explained in Note 2(r), provision is made, based on net present
values, for decommissioning and site rehabilitation costs as soon as
the obligation arises following the development or ongoing production
of a mining property. The provision is based on a closure plan
prepared with the assistance of external consultants.
Management uses its judgement and experience to provide for
and (in the case of capitalised decommissioning costs) amortise
these estimated costs over the life of the mine. The ultimate cost
of decommissioning and site rehabilitation is uncertain and cost
estimates can vary in response to many factors including changes
to relevant legal requirements, the emergence of new restoration
techniques or experience at other mine sites.
The expected timing and extent of expenditure can also change, for
example in response to changes in ore reserves or processing levels.
As a result, there could be significant adjustments to the provisions
established which would affect future financial results.
e) Deferred taxation
As explained in Note 2(p), deferred tax is not provided for future tax
payable on undistributed earnings where the Group is able to control
the remittance of profits and it is probable that there will be no
remittance of past profits earned in the foreseeable future.
Management uses its judgement in estimating the probability
of such remittances. These are based on Group forecasts and
include assumptions as to future profits and cash flows (which
depend on several factors including commodity prices, operating
costs, production levels, capital expenditures, interest costs, debt
repayment and tax rates) and cash requirements (which may also
depend on several factors including future dividend levels). A change
in the assumptions used or in the estimate as to the probability that
past profits will be remitted would impact the deferred tax charge
andbalance sheet provision.
4 Segment information
The Groups reportable segments are as follows:
Los Pelambres
Centinela
Michilla
Antucoya
Zaldvar
Exploration and evaluation
Railway and other transport services
Water concession
Corporate and other items
For management purposes, the Group is organised into three
business divisions based on their products Mining, Railway and
other transport services and the Water concession. The mining
division is split further for management reporting purposes to
show results by mine and exploration activity. Los Pelambres and
Centinela are both operating mines, Michilla was placed on care
andmaintenance at the end of 2015, Antucoya is in its initial
ramp-up stage and Zaldvar, in which the Group has acquired a 50%
stake, was acquired in December 2015. Los Pelambres produces
primarily copper concentrate and molybdenum as a by-product.
Centinela produces primarily copper concentrate containing gold as
a by-product and copper cathodes. Michilla, Antucoya and Zaldvar
produce copper cathodes. The transport division provides rail
cargo (based in Chile and formerly Bolivia) and road cargo (based
in Chile) together with a number of ancillary services (based in
Chile). The water division produced and distributed potable water to
domestic customers and untreated water to industrial customers in
Chiles Antofagasta Region. The Exploration and evaluation segment
incurs exploration and evaluation expenses. Corporate and other
items comprises costs incurred by the Company, Antofagasta
Minerals S.A., the Groups mining corporate centre and other
entities, that are not allocated to any individual business segment.
Consistent with its internal management reporting, the Groups
corporate and other items are included within the mining division.
Management monitors the operating results of business segments
separately for the purpose of making decisions about resources to
be allocated and of assessing performance. Segment performance
isevaluated based on the operating profit of each of the segments.
OVERVIEW
a) Segment revenues and results

Los
Pelambres
$m
Centinela
$m
Michilla
$m
Antucoya
$m
1,807.2
749.3
1,266.1
238.4
168.9
14.1
(101.9)
(67.6)
3,242.2
832.3
152.4
58.4
3,394.6
890.7
(191.6)
(2.7)
(367.6)
(1.8)
1.3
(3.1)
(4.4)
(562.3)
(7.6)
(13.8)
(2.6)
(576.1)
(10.2)
555.0
(131.0)
15.4
(101.9)
(75.1)
262.4
42.0
304.4
(3.7)
10.2
(1.8)
(4.6)
4.3
(27.1)
(9.7)
0.6
0.6
(3.4)
(2.8)
(7.5)
2.2
(1.8)
(7.5)
(14.0)
17.3
(30.7)
(24.6)
8.2
0.8
(3.0)
1.0
(5.8)
18.1
(33.7)
(23.6)
555.1
(161.8)
(163.5)
49.6
16.6
(6.0)
(3.4)
(21.8)
(2.8)
(101.9)
(89.7)
1.8
210.4
(138.2)
49.0
(22.2)
259.4
(160.4)
393.3
(113.9)
10.6
(25.2)
(2.8)
(101.9)
(87.9)
72.2
26.8
99.0
393.3
(151.8)
241.5
(113.9)
46.5
(67.4)
10.6
(0.2)
10.4
(25.2)
11.9
(13.3)
(2.8)
(2.8)
(101.9)
(101.9)
(87.9)
(87.9)
72.2
(93.6)
(21.4)
(13.1)
13.7
0.1
13.8
615.8
615.8
615.8
602.7
701.7
(93.5)
608.2
188.3
535.1
147.9
111.0
982.3
13.9
16.4
1,012.6
3,753.3
5,013.0
122.7
1,974.4
1,026.4 11,889.8
500.7
33.5
(1,205.9)
(2,068.9)
(46.0)
(1,185.5)
998.9
31.0 1,063.4
(151.6) (4,657.9)
83.2
(359.9)
Mining
$m
Total
$m
GOVERNANCE
12,390.5
1,146.6
(5,017.8)
1E
BITDA refers to Earnings Before Interest, Tax, Depreciation and Amortisation. EBITDA is calculated by adding back depreciation, amortisation, profit or loss on disposals and impairment charges
tooperating profit from subsidiaries and joint ventures.
2D
uring the year, operating cash outflow from exploration and evaluation was $38.3 million.
Antofagasta plc 135
OTHER INFORMATION
Profit for the year from

discontinued operations
Profit/(loss) for the year
Net earnings/(losses)
Additions to
noncurrent assets
Capital expenditure
Segment assets
andliabilities
Segment assets
Investment in associates
and joint ventures
Segment liabilities
Railway
and other
transport
Water
services concession
$m
$m
STRATEGIC REPORT
Revenue
EBITDA1
Depreciation and
amortisation
(Loss)/gain on disposals
Operating
profit/(loss)
Share of results
fromassociates
and joint ventures
Investment income
Interest expense
Other finance items
Profit/(loss)
before tax
Tax
Profit/(loss) for the
year from continuing
operations
Exploration Corporate
and and other
items
Zaldvar evaluation2
$m
$m
$m
4 Segment information continued

For the year ended 31 December 2014 (Restated)
Revenue
EBITDA1
Depreciation and
amortisation
(Loss)/gain on disposals
Operating
profit/(loss)
Share of results
from associates
and joint ventures
Investment income
Interest expense
Other finance items
Profit/(loss)
before tax
Tax
Profit/(loss) for the
year from continuing
operations
Profit for the year from
discontinued operations
Profit/(loss) for the year
Net earnings/(losses)
Additions to
noncurrent assets
Capital expenditure
Segment assets
and liabilities
Segment assets
and joint ventures
Segment liabilities
Corporate
and other
items
$m
Railway and
other
transport
Mining
services
$m
$m
Los
Pelambres
$m
Centinela
$m
Michilla
$m
Antucoya
$m
Exploration
and
evaluation2
$m
2,663.6
1,518.6
1,985.7
767.2
335.4
58.7
(167.5)
(99.2)
4,984.7
2,077.8
(178.3)
(2.5)
(301.5)
(1.3)
(87.3)
(0.4)
(2.6)
28.7
1,337.8
464.4
(29.0)
(167.5)
(1.3)
7.5
(3.8)
(2.5)
4.2
(36.6)
2.9
0.7
(8.3)
3.3
1,337.7
(441.7)
434.9
(214.9)
(36.6)
1.3
896.0
220.0
896.0
(352.3)
543.7
Water
concession
$m
Total
$m
160.9
63.6
5,145.6
2,141.4
(569.7)
24.5
(12.0)
(0.6)
(581.7)
23.9
(73.1)
1,532.6
51.0
1,583.6
(9.3)
3.9
(2.4)
(31.4)
(10.6)
16.3
(42.8)
(36.0)
6.5
0.5
(1.6)
(0.3)
(4.1)
16.8
(44.4)
(36.3)
3.3
(9.7)
(167.5)
(112.3)
25.0
1,459.5
(640.0)
56.1
(62.3)
1,515.6
(702.3)
(35.3)
(6.4)
(167.5)
(87.3)
819.5
(6.2)
813.3
220.0
(56.1)
163.9
(35.3)
0.3
(35.0)
(6.4)
3.8
(2.6)
(167.5)
(167.5)
(87.3)
12.3
(75.0)
819.5
(392.0)
427.5
(6.3)
(12.5)
1.1
(11.4)
43.7
43.7
43.7
37.4
850.7
(390.9)
459.8
229.6
535.6
11.1
707.1
51.4
1,534.8
21.2
25.0
1,581.0
3,671.9
5,152.9
181.9
1,619.8
1,455.2
12,081.7
322.9
212.4
12,617.0
8.3
(1,255.2)
(2,014.6)
(114.6)
(994.7)
102.7
(138.2)
111.0
(4,517.3)
87.1
(212.1)
(51.0)
198.1
(4,780.4)
1E
BITDA refers to Earnings Before Interest, Tax, Depreciation and Amortisation. EBITDA is calculated by adding back depreciation, amortisation, profit or loss on disposals and impairment charges
2D
uring the year, operating cash outflow from exploration and evaluation was $60.2 million.
OVERVIEW
Notes to segment revenues and results

(i) The accounting policies of the reportable segments are the same as the Groups accounting policies. Operating profit excludes the share
of net loss from associates and joint venture of $5.8 million (year ended 31 December 2014 net loss of $4.1 million).
(ii) Inter-segment revenues are eliminated on consolidation. Revenue from the Railway and other transport services is stated after
eliminating inter-segmental sales to the mining division of $1.6 million (year ended 31 December 2014 $0.4 million). Revenue from
the Water concession is stated after eliminating inter-segmental sales to the mining division of $2.0 million (year ended 31 December
2014 $7.3 million) and after eliminating sales tothe Railway and other transport services of $0.1 million (year ended 31 December 2014
$0.2 million).
(iv) Revenue includes a realised gain at Michilla of nil (year ended 31 December 2014 gain of $18.3 million) and a realised loss at Centinela
of$0.1 million (year ended 31 December 2014 gain of $0.1 million) relating to commodity derivatives. Further details of such gains
orlosses are given in Note 26(d).
(v) The copper and molybdenum concentrate sales are stated net of deductions for tolling charges. Tolling charges for copper and
molybdenum concentrates are detailed in Note 5.
STRATEGIC REPORT
(iii) Revenue includes the effect of both final pricing and mark-to-market adjustments to provisionally priced sales of copper and molybdenum
concentrates and copper cathodes. Further details of such adjustments are given in Note 5.
(vi) The effects of tax and non-controlling interests on the expenses within the Exploration and evaluation segment are allocated to the mine
that the exploration work relates to.
(viii) As explained in Note 17, during 2014 the Group held a 40% interest in Twin Metals Minnesota Limited (Twin Metals), which until July
2014 was accounted for as a subsidiary as the Group exercised control over the company. In July 2014, the Group lost its ability to control
Twin Metals and accordingly the company ceased to be a subsidiary of the Group, and was accounted for as an associate from that
point. This disposal of the investment in a subsidiary and the recognition of an interest in an associate at fair value resulted in a gain of
$28.6 million in 2014 (shown above within Gains on disposals within the Corporate and other items segment). An impairment charge
of $26.3 million was recognised in 2014, in respect of Duluth Metals Limited (Duluth) shares as set out in Note 8. In January 2015, the
Group completed its acquisition of 100% of Duluth, the company which held the remaining 60% of Twin Metals. This has resulted in the
Group consolidating 100% of the assets and liabilities relating to Twin Metals with effect from January 2015.
GOVERNANCE
(vii) The assets of the Railway and transport services segment includes $75.1 million (year ended 31 December 2014 $78.3 million) relating
to the Groups 40% interest in Inversiones Hornitos S.A. (Inversiones Hornitos), which owns the 165MW Hornitos thermoelectric
power plant in Mejillones inChiles Antofagasta Region and $8.1 million (year ended 31 December 2014 $8.8 million) relating to the
Groups 30% interest in Antofagasta Terminal International S.A. (ATI), which operates a concession to manage installations in the port of
Antofagasta. The assets of the Corporate and other items segment includes $23.8 million (year ended 31 December 2014 $24.5 million)
relating to the Groups 30% interest in Parque Elico El Arrayn S.A., an energy company which operates a wind farm in Chile, and
$10.2 million (year ended 31 December 2014 $11.2 million) relating to the Groups 50.1% interest in the Energa Andina joint venture.
The assets of Los Pelambres includes $33.0 million (year ended 31 December 2014 $8.3 million) relating to the Groups 40% interest
inAlto Maipo SpA, which is constructing a hydroelectric project in Chile. Further details of these investments are set out in Note 17.
b) Entity-wide disclosures
2015
$m
2014
(Restated)
$m
1,606.7
626.6
432.3
168.9
2,348.6
1,073.8
631.9
335.4
105.3
182.8
60.7
191.3
80.5
256.3
34.5
15.9
3,242.2
152.4
3,394.6
51.7
23.7
4,984.7
160.9
5,145.6
Copper
Los Pelambres
Centinela Concentrate
Centinela Cathodes
Michilla
Molybdenum
Los Pelambres
Gold
Los Pelambres
Centinela
Silver
Los Pelambres
Centinela
Total Mining
Railway and transport services
Antofagasta plc 137
OTHER INFORMATION
Revenue by product
4 Segment information continued

Revenue by location of customer
2015
$m
2014
(Restated)
$m
19.1
175.2
54.1
167.0
70.6
8.2
138.5
160.6
146.1
137.7
167.0
74.1
215.3
161.0
107.3
133.7
1,147.0
782.4
630.8
3,394.6
1,965.4
1,253.1
826.0
5,145.6
Europe
United Kingdom
Switzerland
Spain
Germany
Rest of Europe
Latin America
Chile
Rest of Latin America
North America
United States
Asia
Japan
China
Rest of Asia
Information about major customers

In the year ended 31 December 2015, the Groups mining revenues included $426.0 million related to one large customer that individually
accounted for more than 10% of the Groups revenues (year ended 31 December 2014 one large customer representing $804.3 million).
Non-current assets by location of assets
2015
$m
Chile
Bolivia
USA
Other
10,284.6
171.2
0.8
10,456.6
The above non-current assets disclosed by location of assets exclude available-for-sale investments and deferred tax assets.
2014
$m
8,934.8
30.9
67.4
0.6
9,033.7
OVERVIEW
5 Revenues
An analysis of the Groups total revenue is as follows:
2014
(Restated)
$m
3,265.9
128.7
3,394.6
37.6
18.1
3,450.3
5,005.2
140.4
5,145.6
20.8
16.8
5,183.2
In addition to mark-to-market and final pricing adjustments, revenue also includes realised gains and losses relating to derivative commodity
instruments. Details of these realised gains or losses are shown in the tables below. Further details of derivative commodity instruments
inplace at the period end are given in Note 26.
GOVERNANCE
Copper and molybdenum concentrate sale agreements and copper cathode sale agreements generally provide for provisional pricing of sales
at the time of shipment, with final pricing being based on the monthly average London Metal Exchange copper price or monthly average
molybdenum price for specified future periods. This normally ranges from one to five months after shipment to the customer. The provisional
pricing mechanism within the sale agreements is an embedded derivative under IFRS. Gains and losses from the marking-to-market of
open sales are recognised through adjustments to revenue in the income statement and to trade debtors in the balance sheet. The Group
determines mark-to-market prices using forward prices at each period end for copper concentrate and cathode sales, and period-end month
average prices for molybdenum concentrate sales due to the absence of a futures market in the market price references for that commodity
inthe majority of the Groups contracts.
STRATEGIC REPORT
Sales of goods
Rendering of services
Group revenue
Other operating income (included within net operating costs)
Investment income
Total revenue
2015
$m
Copper and molybdenum concentrate sales are stated net of deductions for tolling charges, as shown in the tables below.
Centinela
Copper
cathodes
$m
Michilla
Copper
cathodes
$m
Los Pelambres
Gold in
concentrate
$m
Centinela
Gold in
concentrate
$m
Los Pelambres
Molybdenum
concentrate
$m
2,001.6
805.8
443.4
173.3
63.0
200.7
147.0
45.5
19.6
1.4
0.4
1.8
2.0
(100.4)
(49.8)
(5.6)
(2.3)
3.6
(7.1)
(54.9)
(30.2)
(4.2)
(1.9)
5.4
(5.1)
(126.7)
(47.6)
(7.1)
(2.6)
(2.1)
(11.8)
(19.8)
(14.5)
(6.2)
0.2
0.1
(2.2)
1.0
(141.2)
(196.1)
1,805.5
(198.8)
1,606.7
(53.8)
(84.0)
721.8
(95.2)
626.6
(6.9)
(11.1)
432.3
432.3
(2.5)
(4.4)
168.9
168.9
(2.1)
(2.1)
60.9
(0.2)
60.7
(14.0)
(8.6)
192.1
(0.8)
191.3
(18.8)
(23.9)
123.1
(17.8)
105.3
Antofagasta plc 139
OTHER INFORMATION
Total effect of adjustments tocurrent

year invoices
Total pricing adjustments
Realised gains on commodityderivatives
Revenue before deducting tolling charges
Tolling charges
Revenue net of tolling charges
Centinela
Copper
concentrate
$m
Provisionally invoiced gross sales

Effects of pricing adjustments
toprevious year invoices
Reversal of mark-to-market adjustments
atthe end of the previous year
Settlement of sales invoiced inthe
previous year
Total effect of adjustments toprevious
year invoices inthecurrent year
Effects of pricing adjustments
tocurrent year invoices
Settlement of sales invoiced inthe
current year
Mark-to-market adjustments
attheend ofthe current year
Los Pelambres
Copper
concentrate
$m
5 Revenues continued
Provisionally invoiced grosssales

Effects of pricing adjustments to previous
yearinvoices
Reversal of mark-to-market adjustments at the
end of the previous year
Settlement of sales invoiced in the previous year
Total effect of adjustments toprevious
year invoices inthe current year
Effects of pricing adjustments to current
year invoices
Settlement of sales invoiced inthe current year
Mark-to-market adjustments atthe end of the
current year
Total effect of adjustments tocurrent
year invoices
Total pricing adjustments
Realised gains on commodityderivatives
Revenue before deducting tolling charges
Tolling charges
Revenue net of tolling charges
Los Pelambres
Copper
concentrate
$m
Centinela
Copper
concentrate
$m
Centinela
Copper
cathodes
$m
Michilla
Copper
cathodes
$m
Los Pelambres
Gold in
concentrate
$m
Centinela Los Pelambres

Gold in Molybdenum
concentrate
concentrate
$m
$m
2,642.5
1,226.8
640.6
322.0
80.4
267.8
213.7
(27.1)
(27.7)
(8.8)
(9.8)
(1.0)
1.2
0.1
(0.3)
0.4
4.5
(2.0)
1.2
0.2
(54.8)
(18.6)
0.2
(0.2)
0.4
2.5
1.4
(29.8)
(19.7)
(7.7)
(4.3)
(11.7)
(15.2)
(45.5)
(19.6)
(1.3)
(0.4)
(1.8)
(2.0)
(75.3)
(130.1)
2,512.4
(163.8)
2,348.6
(39.3)
(57.9)
1,168.9
(95.1)
1,073.8
(9.0)
(8.8)
0.1
631.9
631.9
(4.7)
(4.9)
18.3
335.4
335.4
0.4
80.8
(0.3)
80.5
(13.5)
(11.0)
256.8
(0.5)
256.3
(17.2)
(15.8)
197.9
(15.1)
182.8
(i) Copper concentrate

The typical period for which sales of copper concentrate remain open until settlement occurs is a range of approximately three to five months
from shipment date.
At 31 December 2015, sales totalling 184,400 tonnes remained open as to price, with an average mark-to-market price of $2.13/lb compared
with an average provisional invoice price of $2.18/lb.
(ii) Copper cathodes
The typical period for which sales of copper cathodes remain open until settlement occurs is approximately one month from shipment date.
withan average provisional invoice price of $2.12/lb.
The typical period for which sales of gold in concentrate remain open is approximately one month from shipment date.
At 31 December 2015, sales totalling 50,300 ounces remained open as to price, with an average mark-to-market price of $1,061/oz compared
with an average provisional invoice price of $1,105/oz.
OVERVIEW
(iii) Gold concentrates
At 31 December 2014, sales totalling 81,600 ounces remained open as to price, with an average mark-to-market price of $1,186/oz compared
with an average provisional invoice price of $1,209/oz.
(iv) Molybdenum concentrate
At 31 December 2015, sales totalling 1,900 tonnes remained open as to price, with an average mark-to-market price of $5.1/lb compared with
an average provisional invoice price of $4.8/lb.
At 31 December 2014, sales totalling 1,900 tonnes remained open as to price, with an average mark-to-market price of $9.0/lb compared with
an average provisional invoice price of $9.4/lb.
STRATEGIC REPORT
The typical period for which sales of molybdenum remain open is approximately two months from shipment date.
As detailed above, the effects of gains and losses from the marking-to-market of open sales are recognised through adjustments to revenue
inthe income statement and to trade debtors in the balance sheet. The effect of mark-to-market adjustments on the balance sheet at the end
of each period are as follows:
Los Pelambres copper concentrate

Los Pelambres molybdenum concentrate
Centinela copper concentrate
Centinela Gold concentrate
Centinela copper cathodes
Michilla copper cathodes
2014
$m
(14.5)
1.0
(6.2)
(2.2)
0.2
0.1
(21.6)
(45.5)
(2.0)
(19.6)
(1.8)
(1.3)
(0.4)
(70.6)
6 Profit before tax

Operating profit from subsidiaries and total profit from operations and associates and joint ventures is derived from Group revenue by
deducting operating costs as follows:
2014
(Restated)
$m
3,394.6
(2,478.9)
915.7
(455.7)
37.6
(193.2)
304.4
(5.8)
298.6
5,145.6
(2,869.3)
2,276.3
(457.2)
20.8
(256.3)
1,583.6
(4.1)
1,579.5
Antofagasta plc 141
OTHER INFORMATION
Group revenue
Cost of sales
Gross profit
Administrative and distribution expenses
Other operating income
Other operating expenses
Total profit from operations, associates and joint ventures
2015
$m
2015
$m
GOVERNANCE
Effect on debtors of year end

mark-to-market adjustments
6 Profit before tax continued

Profit before tax is stated after (charging)/crediting:
2015
$m
2014
(Restated)
$m
(13.6)
(1.0)
4.0
(0.4)
(569.9)
(6.2)
(10.2)
(1,762.1)
(380.0)
(25.8)
(16.6)
(101.9)
(1.7)
(575.6)
(6.1)
23.9
(2,006.5)
(462.8)
7.2
(17.5)
(167.5)
(1.4)
2015
$000
2014
$000
982
666
246
235
30
15
48
143
1,699
270
301
17
105
1,359
Foreign exchange (losses)/gains
included in net finance costs

included in income tax expense
Amortisation of intangible asset included in cost of sales
Depreciation of property, plant and equipment
owned assets
assets held under finance leases
Property and equipment written off
Cost of inventories recognised as expense
Employee benefit expense
Closure provision
Severance charges
Exploration and evaluation cost
Auditors remuneration
A more detailed analysis of auditors remuneration on a worldwide basis is provided below:

Group
Fees payable to the Companys auditor and its associates for the audit of parent company and
consolidatedfinancialstatements
Fees payable to Companys auditor and its associates for other services:
The audit of Companys subsidiaries

Audit-related assurance services
Tax advisory services
Tax compliance services
Other assurance services
Other non-audit services
Details of the Companys policy on the use of auditors for non-audit services, the reason why the auditor was used rather than another
supplier and how the auditors independence and objectivity was safeguarded are set out in the Audit and Risk Committee report on page 86.
No services were provided pursuant to contingent fee arrangements.
OVERVIEW
7 Employees
a) Average monthly number of employees
Los Pelambres
Centinela
Michilla
Antucoya
Exploration and evaluation
Corporate and other employees
928
2,100
395
698
58
925
2,108
688
463
52
Chile
United Kingdom
Other
417
5
25
4,626
1,324
5,950
380
8
36
4,660
1,575
374
6,609
Mining
Water concession
(i) The average number of employees for the year includes all the employees of subsidiaries. The average number of employees does not include contractors who are not directly employed
bythe Group.
(ii) The average number of employees does not include employees from associates and joint ventures.
(iii) The average number of employees includes Non-Executive Directors.
GOVERNANCE
2014
Number
STRATEGIC REPORT
2015
Number
b) Aggregated remuneration
The aggregated remuneration of the employees included in the table above was as follows:
2014
$m
(407.7)
(14.6)
(422.3)
(478.6)
(24.2)
(502.8)
During 2015, the amount relating to Minera Antucoya of $42.3 million (2014 $39.9 million) on wages, salaries and social security cost has
been capitalised.
c) Key management personnel
Compensation for key management personnel (including Directors) was as follows:
Salaries and short-term employee benefits
2015
$m
2014
$m
(19.2)
(19.2)
(18.4)
(18.4)
Disclosures on Directors remuneration required by Schedule 8 of the Large and Medium-sized Companies and Group (Accounts and Reports)
Regulations 2008 including those specified for audit by that Schedule are included in the Remuneration Report on page 96.
Antofagasta plc 143
OTHER INFORMATION
In accordance with IAS 24, key management personnel are those persons having authority and responsibility for planning, directing
and controlling the activities of the Group, directly or indirectly, including any Directors (Executive and Non-Executive) of the Company.
Key management personnel who are not Directors have been treated as responsible senior management at the Corporate Centre and
fortherunning of the key business divisions of the Group.
Wages and salaries

Social security costs
2015
$m
8 Net finance expense
Investment income
Interest income
Fair value through profit or loss
Interest expense
Interest expense
Preference dividends
Other finance items
Time value effect of derivatives
Unwinding of discount on provisions
Impairment of available-for-sale investments
Foreign exchange
Net finance expense
2015
$m
2014
(Restated)
$m
16.7
1.4
18.1
14.2
2.6
16.8
(33.5)
(0.2)
(33.7)
(44.2)
(0.2)
(44.4)
0.1
(9.1)
(1.0)
(13.6)
(23.6)
(39.2)
(5.1)
(8.9)
(26.3)
4.0
(36.3)
(63.9)
At 31 December 2015, an expense of $29.6 million relating to net interest expense and other finance items at Antucoya was capitalised
(at31 December 2014 $27.4).
As at 31 December 2014, the Group held a 17.2% stake in Duluth Metals Limited (Duluth), accounted for as an available-for-sale investment.
As at 31 December 2014, Duluth held a 60% interest in Twin Metals Minnesota Limited (Twin Metals), with the Group holding the remaining
40% interest in Twin Metals. As disclosed in Note 19, in November 2014 Antofagasta entered into a binding letter of agreement to acquire
100% of Duluth. The acquisition completed subsequent to the 2014 year end following approval from Duluths shareholders in January 2015.
Movements in the fair value of the available-for-sale investment in Duluth had previously been recorded within the Consolidated Statement
of Comprehensive Income. The agreed acquisition terms indicated a final fixed value for the Duluth shares, and that there had therefore been
an impairment in the value of the Duluth shares to this amount. Accordingly, an impairment charge of $26.3 million was recognised in 2014 in
respect of this available-for-sale investment, with fair value losses previously recorded within the Consolidated Statement of Comprehensive
Income being transferred to the income statement and recognised within this impairment loss. This impairment change was largely offset by
the related $28.6 million disposal gain recognised in 2014 in respect of the temporary loss of control of the Twin Metals project as set out in
Note 17.
The fair value through profit or loss line represents the fair value gains relating to liquid investments.
9 Income tax expense

The tax charge for the year comprised the following:
2015
$m
2014
(Restated)
$m
(41.6)
(20.4)
(12.9)
(1.0)
(75.9)
(360.9)
(71.9)
(279.3)
(0.6)
(712.7)
(69.0)
(13.6)
(1.9)
(84.5)
(160.4)
10.2
(215.1)
(7.2)
222.5
10.4
(702.3)
Current tax charge
Corporate tax (principally first category tax in Chile)

Mining tax (royalty)
Withholding tax
Exchange losses on corporate tax balances
Deferred tax charge
Corporate tax (principally first category tax in Chile)

Adjustment to deferred tax attributable to changes in tax rates
Withholding tax provision
Total tax charge
The rate of first category (ie corporate) tax in Chile is currently 22.5% (2014 21%). The rate will increase to 24% in 2016.
OVERVIEW
In addition to first category tax, the Group incurs withholding taxes on any remittance of profits from Chile and deferred tax is provided on
undistributed earnings to the extent that remittance is probable in the foreseeable future. Withholding tax is levied on remittances of profits
from Chile at 35% less first category (ie corporate) tax already paid in respect of the profits to which the remittances relate.
Under the partially-integrated system the corporate tax rate will be 25.5% in 2017 and 27% from 2018 onwards. The immediate shareholders
of the Chilean subsidiaries will pay withholding tax based on the cash distributions made by those subsidiary companies, as with the current
tax system. If the subsidiary companys shareholders are tax resident in countries with applicable tax treaties with Chile (as is the case for the
Group) the withholding tax will be 35%, less first category tax at the rate it was paid, so if the Company distributes all of its earnings the total
corporate and withholding tax burden will be 35%.
2014
(Restated)
2015
$m
259.4
(58.4)
(8.9)
(17.1)
(25.8)
(34.0)
(14.8)
(0.5)
(0.9)
(160.4)
$m
22.5
3.4
6.6
9.9
13.1
5.7
0.2
0.3
61.8
1,515.6
(318.3)
(215.1)
(33.5)
(79.1)
(56.8)
(0.9)
1.4
(702.3)
21.0
14.2
2.2
5.2
3.7
0.1
(0.1)
46.3
There are no significant tax uncertainties which would require critical judgements, estimates or potential provisions.
Antofagasta plc 145
OTHER INFORMATION
The tax charge for 2015 was $160.4 million and the effective tax rate was 61.8%. In 2015 the effective tax rate varied from the statutory
rateprincipally due to tax losses which under Chilean tax carry-back rules generated a credit at historic tax rates below the current year
statutory rate (impact of $25.8 million/9.9%), the effect of expenses not deductible for Chilean corporate tax purposes (principally the funding
of expenses outside of Chile) (impact of $17.1 million/6.6%) and the mining tax (impact of $34.0 million/13.1%) and withholding tax charge
(impact of $14.8 million/5.7%). In 2014, the effective tax rate varied from the standard rate (comprising corporate (first category) tax) principally
due to the one-off deferred tax charge of $215.1 million reflecting the increase in tax rates as a result of the Chilean tax reform enacted
inthat year.
Profit before tax

Tax at the Chilean corporate tax rate of 22.5% (2014 21%)
Effect of increase in first category tax rates on deferred tax balances
Items not subject to or deductible from first category tax
Carry-back tax losses resulting in credits at historic tax rates
Withholding taxes
Tax effect of share of results of associates and joint ventures
Net other items
Tax expense and effective tax rate for the year
GOVERNANCE
The Groups mining operations are also subject to a mining tax (royalty). Production from Los Pelambres, the Tesoro Central and Mirador
pits at Centinela Cathodes and Michilla are currently subject to a rate of 4% of taxable operating profit and Centinela Concentrates of 5%,
and production from the Tesoro North East pit and the run-of-mine processing at Centinela Cathodes is subject to a rate of between 514%,
depending on the level of operating profit margin.
STRATEGIC REPORT
On 29 September 2014, a significant reform of the Chilean system was enacted into law. This introduced two alternative future taxation
systems the partially-integrated system (the default system for the Groups Chilean subsidiaries) or the attributable system. The Group has
been accounting for deferred tax on the basis that it would apply the default partially-integrated system. On 1 February 2016, a Simplification
ofthe Tax Reform was enacted into law. This specifies that for entities such as the Groups Chilean subsidiaries, whose members are
corporate entities and not individual persons, only the partially-integrated system can be applied. Given that the Group has already been
accounting for deferred tax on the basis that it would apply the default partially-integrated system this has not resulted in any accounting
impact for the Group.
10 Discontinued operations
(i) Asset disposals
On 2 June 2015, the Group completed the disposal of its Water division, of Aguas de Antofagasta S.A. (ADASA). On 28 August 2015, the
Group completed the disposal of its transport operation in Bolivia, Empresa Ferroviaria Andina (FCA).
The results of ADASA and FCA for the period prior to disposal as well as the profit on disposal have been presented on the Profit for the
period from discontinued operations line in the income statement, reflecting the following amounts:
Revenue
Total operating costs
Net finance(expense)/income
(Loss)/profit before tax
Attributable tax expense
(Loss)/profit of discontinued
operations
(Loss)/profit on disposal of discontinued
operations1
Attributable tax expense2
Net profit attributable to discontinued
operations (attributable to owners of
the Company)
FCA
$m
ADASA
$m
Year ended
31 December
2014
$m
FCA
$m
ADASA
$m
Year ended
31 December
2015
$m
12.9
(20.2)
(0.2)
(7.5)
53.9
(34.9)
(0.1)
18.9
(3.9)
66.8
(55.1)
(0.3)
11.4
(3.9)
19.9
(25.3)
(0.3)
(5.7)
(0.6)
124.9
(63.4)
2.1
63.6
(19.9)
144.8
(88.7)
1.8
57.9
(20.5)
(7.5)
15.0
7.5
(6.3)
43.7
37.4
(5.6)
853.2
(252.4)
847.6
(252.4)
(13.1)
615.8
602.7
(6.3)
43.7
37.4
1P
rofit on disposal included a loss of $3.9 million and a profit of $2.1 million related to the accumulated currency translation adjustment relating to ADASA and FCA respectively, which has been
reclassified from translation reserves in other comprehensive income to the income statement upon disposal.
2T
ax expense includes $57.2 million related to withholding tax.
The operating costs at ADASA related with amortisation of concession rights are $2.4 million at December 2015 (2014 $10.9 million).
During the period, ADASA contributed $21.7 million (2014 $63.6 million) to the Groups net cash flow from operating activities, $19.2 million
(2014 $25.7 million) in respect to net cash used in investing activities and paid $2.0 million (2014 $27.9 million) in net cash provided in
financing activities.
During the period, FCA contributed $2.2 million (2014 $4.8 million) to the Groups net cash flow from operating activities, $2.1 million
(2014 $4.5 million) in respect to net cash used in investing activities and paid $0.1 million (2014 $0.3 million) in net cash provided in
financing activities.
On 2 June 2015, the Group disposed of its 100% interest in Aguas de Antofagasta S.A. (ADASA). The proceeds on disposal of
$962.8 million were received in cash. The gain on disposal of ADASA is analysed below. No investment was retained in the former subsidiary.
OVERVIEW
(ii) Disposal of Aguas de Antofagasta S.A.
The net assets of ADASA at the date of disposal were as follows:

At
2 June 2015
$m
962.8
962.8
(19.9)
942.9
On 28 August 2015, the Group disposed of its 50% interest in Empresa Ferroviaria Andina (FCA). The gain on disposal of FCA is analysed
below. No investment was retained in the former subsidiary.
The net assets of FCA at the date of disposal were as follows:
At
28 August 2015
$m
(iii) Disposal of Empresa Ferroviaria Andina
20.5
6.6
0.5
4.6
(2.7)
(4.5)
(6.1)
(13.3)
5.6
(5.6)
Antofagasta plc 147
OTHER INFORMATION
Proceeds on disposal, cash and cash equivalents

Asset disposed of:
Trade receivables
Other assets
Borrowings
Retirement benefit obligation
Non-controlling interest
Total carrying amount disposed
Loss on disposal of discontinued operations (before tax)
GOVERNANCE
113.7
64.1
2.0
2.5
23.7
19.9
(18.3)
(80.2)
(2.8)
(1.6)
(13.4)
109.6
853.2
STRATEGIC REPORT
Proceeds on disposal, cash and cash equivalents

Asset disposed of:
Intangibles
Inventories
Current tax asset
Trade receivables
Trade payables
Borrowings
Retirement benefit obligation
Long-term provision
Total carrying amount disposed
Profit on disposal of discontinued operations (before tax)
Net cash inflow arising on disposal:
Consideration received in cash and cash equivalents
Less: cash and cash equivalents disposed of
11 Earnings per share

Profit for the year attributable to equity holders of the Company (Net earnings)
Ordinary shares in issue throughout each year
Basic earnings per share

From continuing operations
From discontinued operations
Total continuing and discontinued operations
2015
$m
2014
$m
608.2
459.8
2015
Number
2014
Number
985,856,695
985,856,695
2015
US cents
2014
US cents
0.6
61.1
61.7
42.8
3.8
46.6
Basic earnings per share are calculated as profit after tax and non-controlling interests, based on 985,856,695 ordinary shares.
There was no potential dilution of earnings per share in either year set out above, and therefore diluted earnings per share did not differ from
basic earnings per share as disclosed above.
12 Dividends
Amounts recognised as distributions to equity holders in the year:
2015
$m
2014
$m
2015
US cents
per share
2014
US cents
per share
96.6
848.8
9.8
86.1
30.6
127.2
115.4
964.2
3.1
12.9
11.7
97.8
Final dividend paid in June (proposed in relation to the previous year)
ordinary
Interim dividend paid in October
ordinary
The proposed final dividend for each year, which is subject to approval by shareholders at the Annual General Meeting and has therefore not
been included as a liability in these financial statements, is as follows:
Final dividend proposed in relation to the year

ordinary
2015
$m
2014
$m
2015
US cents
per share
2014
US cents
per share
96.6
96.6
9.8
9.8
This gives total dividends proposed in relation to 2015 (including the interim dividend) of 3.1 cents per share or $30.6 million (2014 21.5 cents
per share or $212.0 million).
In accordance with IAS 32, preference dividends have been included within interest expense (see Note 8) and amounted to $0.2 million
(2014 $0.2 million).
Further details of the currency election timing and process (including the default currency of payment) are available on the Antofagasta plc
website (www.antofagasta.co.uk) or from the Companys registrar, Computershare Investor Services PLC on +44 870 702 0159.
Further details relating to dividends for each year are given in the Directors Report.
$m
243.7
14.1
(24.4)
233.4
150.1
(228.6)
(4.8)
150.1
GOVERNANCE
(110.7)
(10.9)
6.8
(114.8)
(2.4)
114.9
2.3
STRATEGIC REPORT
Cost
At 1 January 2014
Additions
Foreign currency exchange difference
At 31 December 2014
Additions through acquisition of Twin Metals
Disposals
At 31 December 2015
Accumulated amortisation and impairment
At 1 January 2014
Charge for the year
At 31 December 2014
Charge for the year
Disposals
At 31 December 2015
Net book value
At 31 December 2015
At 31 December 2014
OVERVIEW
13 Intangible assets
150.1
118.6
The prior year balance related to Aguas de Antofagasta S.A.s (ADASA) 30-year concession to operate the water rights and facilities in the
Antofagasta Region of Chile. This balance was disposed of as part of the sale of ADASA on 2 June 2015, as disclosed in Note 10.
As disclosed in Note 19, in January 2015 the Group completed its acquisition of 100% of Duluth Metals Limited (Duluth). The principal asset
of Duluth was its 60% stake in Twin Metals Minnesota Limited (Twin Metals), a company in which the Group held the remaining 40% stake
as at December 2014. This transaction has resulted in the Group consolidating 100% of the assets and liabilities relating to Twin Metals with
effect from January 2015, including the above $150.1 million intangible asset reflecting the value of Twin Metals mining property assets.
The mining properties acquired will be amortised once production commences.
OTHER INFORMATION
Antofagasta plc 149
14 Property, plant and equipment

Land
$m
Cost
At 1 January 2014
Additions
Adjustment to capitalised
decommissioning provisions
Reclassifications
Assets derecognised due to loss of control
of subsidiary
Asset disposals
At 31 December 2014
Additions
Additions through acquisition of
Twin Metals
Adjustment to capitalised decommissioning
provisions
Reclassifications
Asset disposals
At 31 December 2015
Accumulated depreciation and
impairment
At 1 January 2014
Charge for the year
Depreciation capitalised in inventories
Depreciation capitalised in property, plant
and equipment
Assets derecognised due to loss of control
of subsidiary
Reclassifications
Asset disposals
At 31 December 2014
Charge for the year
Additions through acquisition of Twin Metals
Depreciation capitalised in inventories
Depreciation capitalised in property, plant
and equipment
Reclassifications
Asset disposals
At 31 December 2015
Net book value
at 31 December 2015
At 31 December 2014
Assets under finance leases included in
the totals above
Net book value
at 31 December 2015
At 31 December 2014
Mining Buildings and

properties infrastructure
$m
$m
Railway
track
$m
Machinery,
Wagons and equipment
rolling stock and others
$m
$m
Assets under
construction
$m
Total
$m
26.4
1,318.1
73.8
3,559.9
1.7
72.3
150.4
7.3
4,453.5
52.5
1,580.1
1,445.7
11,160.7
1,581.0
25.4
(48.1)
260.8
4.8
8.0
227.6
(517.0)
(48.1)
9.6
26.4
(89.6)
(0.8)
1,326.9
81.1
(0.9)
(12.8)
3,760.6
0.2
(1.8)
75.3
(2.6)
163.1
1.8
(6.0)
(29.7)
(2.9)
4,695.0
93.9
(3.3)
(1.6)
2,503.9
835.6
(95.6)
(39.1)
(17.3)
12,551.2
1,012.6
0.6
9.9
0.1
11.4
22.0
12.0
(0.8)
38.2
95.5
(29.7)
(4.1)
1,479.6
(35.7)
590.9
(0.8)
(5.1)
4,310.2
4.6
(1.5)
78.4
6.4
(35.9)
(3.9)
131.5
1,227.9
(55.4)
(14.1)
(0.8)
5,957.9
(1,813.3)
(30.0)
(2.6)
(0.5)
1,493.1
(35.7)
124.0
(152.6)
(26.2)
(6.4)
13,488.9
(604.5)
(121.5)
(1,040.8)
(142.2)
(18.4)
(2.3)
(88.2)
(14.9)
(1,549.6)
(314.2)
(10.0)
(447.6)
(3,749.1)
(595.1)
(10.0)
(16.4)
(16.4)
(726.0)
(134.7)
0.8
8.6
(1,173.6)
(149.0)
0.8
(19.9)
(2.7)
(0.6)
3.4
(100.3)
(18.1)
1.2
(9.8)
27.8
1.1
(1,869.9)
(286.2)
(1.2)
(24.8)
(447.6)
1.2
(10.4)
32.8
9.7
(4,337.3)
(590.7)
(1.2)
(24.8)
(860.7)
3.5
(4.3)
3.6
(1,319.8)
0.6
(22.0)
38.1
3.0
(0.1)
(77.4)
(20.1)
26.4
4.1
10.3
1.1
(2,160.3)
(447.6)
(20.1)
68.0
(0.2)
13.9
4.6
(4,887.8)
38.2
26.4
618.9
600.9
2,990.4
2,587.0
56.4
55.4
54.1
62.8
3,797.6
2,825.1
1,045.5
2,056.3
8,601.1
8,213.9
26.5
26.9
3.0
9.9
14.7
36.4
44.6
The charge for the year of depreciation included $2.8 million related to the charge of the period for Aguas de Antofagasta S.A (until May, 2015)
and $12.1 Empresa Ferroviaria Andina (until August, 2015) and shown as discontinued operations in Note 4.
OVERVIEW
The Group has pledged assets with a carrying value of $301.4 million (2014 $169.3 million) as security against bank loans provided to the
Group. The increase in the value of pledged assets compared with 2014 reflects the guarantees relating to the Antucoya project financing
during 2015.
At 31 December 2015 the Group had entered into contractual commitments for the acquisition of property, plant and equipment amounting
to$283.1 million (2014 $253.2 million) of which $138.6 million was related to the development of the Encuentro Oxides project.
Compensation from insurance companies related to property, plant and equipment included in the consolidated income statement was
$15.2 million in 2015 (2014 $2.5 million).
Additions include $20.8 million related to property, plant and equipment of Twin Metals as part of the acquisition of the Duluth group of assets
(see Note 19).
Reclassification additions are mainly related to the capitalisation of interests and other expenses incurred during the commissioning
of Antucoya.
STRATEGIC REPORT
At 31 December 2015 $44.9 million (2014 $26.4 million) of depreciation in respect of assets relating to Los Pelambres, Centinela, Antucoya
and Michilla has been capitalised within property, plant and equipment or inventory, and accordingly is excluded from the depreciation charge
recorded in the income statement as shown in Note 4(a).
15 Impairment review
In both cases fair value less costs of disposal (FVLCD) calculations have been used, based on discounted cash flow models incorporating
estimates of assumptions that would be used by independent market participants in valuing the assets. The cash flow models are based
onthe operations detailed life-of-mine plans.
For both Centinela and Antucoya, the recoverable amount indicated by the FVLCD calculations was greater than the carrying value of the
assets, and accordingly no impairment charge has been recorded.
Antofagasta plc 151
OTHER INFORMATION
The assumptions used in the FVLCD calculations which are considered to be subject to the most estimation uncertainty are the longterm
copper price and the discount rate. To illustrate the sensitivity of the valuations of Centinela and Antucoya to negative movements in
these parameters, a 5% decrease in the forecast long-term copper price would result in an impairment of $375 million at Centinela and
animpairment of $95 million at Antucoya, and an increase in the discount rate from 8% to 9% would result in an impairment of $190 million
at Centinela and an impairment of $50 million at Antucoya. These are simple sensitivities, looking at illustrative movements in the longterm
copper price and discount rate in isolation. In reality, a deterioration in the long-term copper price environment is likely to resultin corresponding
improvements in a range of input cost factors, as well as potential operational changes, which could partly mitigate the aboveestimated
potential impairment charges.
The key assumptions to which the value of the assets are most sensitive are future commodity prices, the discount rate used to determine
the present value of the future cash flows, future operating costs, sustaining and development capital expenditure and ore reserve estimates.
The commodity price forecasts (representing the Groups estimates of the assumptions that would be used by independent market
participants in valuing the assets) are based on consensus forecasts, information disclosed by other mining companies and prices implied
byrecent market transactions. A long-term copper price of $3.00/lb has been used in the FVLCD calculations. A real post-tax discount rate
of8% has been used in determining the present value of the forecast future cash flow from the assets.
GOVERNANCE
Given the recent deterioration in commodity market conditions the Group has reviewed its assets for indicators of impairment, and has
performed impairment reviews in respect of the Centinela and Antucoya operations.
16 Investments in subsidiaries
The principal subsidiaries of the Group, the percentage of equity owned and the main country of operation are set out below. These interests
are consolidated within these financial statements.
Direct subsidiaries of the Parent Company
Antofagasta Railway Company plc
Chilean Northern Mines Limited
Antofagasta Investment Company Limited
Alfa Estates Limited
Minprop Limited
Andes Trust Limited (The)
Indirect subsidiaries of the Parent Company
Antofagasta Minerals S.A.
Minera Los Pelambres SCM
Minera Centinela SCM
Minera Michilla S.A.
Minera Antucoya Limitada
Minera Encuentro SCM
Minera Mulpun Limitada
Equatorial Resources SpA
Minera Santa Margarita de Astillas SCM
Minera Penacho Blanco S.A.
Duluth Metals Limited
Twin Metals Minnesota LLC
Inversiones Los Pelambres Chile Limitada.
El Tesoro SPV Bermuda Limited
Andes Investment Company (Jersey) Limited
Antofagasta Minerals Canada
Minera Anaconda Peru SA
Antofagasta Minerals Australia Pty Limited
Antofagasta Services Limited
Ferrocarril Antofagasta a Bolivia (Agency)
Servicios de Transportes Integrados Limitada
Inversiones Punta de Rieles Limitada
Inversiones Chilean Northern Mines Limitada
The Andes Trust Chile S.A.
Transportes Integrados Limitada
Inversiones Transportes Integrados Limitada
Embarcadores Limitada
FCAB Ingenieria y Servicios Limitada
Emisa Antofagasta S.A.
Servicios Logisticos Capricornio Limitada
Forestal S.A.
Atacama Copper Company Pty Limited
Tethyan Copper Company Limited
Chagai Mineral Company Limited
Tethyan Copper Company Pakistan (Private) Limited
Paktui Exploration Limited
Northern Minerals Investment (Jersey) Limited
Northern Metals (UK) Limited
Northern Minerals Holding Co
Twin Metals (UK) Limited
Twin Metals Inc.
DMC LLC
Duluth Metals Holdings Inc
Duluth Exploration Inc
Country of incorporation
Country of operations
Nature of business
Economic interest
UK
UK
Jersey
Jersey
Jersey
UK
Chile
Chile
Jersey
Jersey
Jersey
UK
Railway
Investment
Investment
Investment
Mining
Investment
100%
100%
100%
100%
100%
100%
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Canada
USA
Chile
Bermuda
Jersey
Canada
Peru
Australia
UK
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Australia
Australia
Pakistan
Pakistan
Pakistan
Jersey
UK
USA
UK
USA
USA
USA
USA
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Canada
USA
Chile
Bermuda
Jersey
Canada
Peru
Australia
UK
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Australia
Australia
Pakistan
Pakistan
Pakistan
Jersey
UK
USA
UK
USA
USA
USA
USA
Mining
Mining
Mining
Mining
Mining
Mining
Mining
Investment
Mining
Mining
Investment
Mining
Investment
Investment
Investment
Mining
Mining
Mining
Group services
Railway
Road transport
Investment
Investment
Investment
Transport
Investment
Transport
Transport
Transport
Transport
Forestry
Investment
Investment
Investment
Mining
Investment
Investment
Investment
Investment
Investment
Investment
Investment
Investment
Investment
100%
60%
70%
99.9%
70%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
50%
50%
50%
50%
50%
100%
100%
100%
100%
100%
100%
100%
100%
Economic interest
Investment
Investment
Investment
Mining
Mining
Mining
Mining
Investment
Investment
Investment
Investment
Investment
Investment
Investment
Investment
Investment
Investment
Investment
Investment
Investment
Investment
Investment
Investment
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
The proportion of the voting rights is proportional with the economic interest under the companies listed above.
During 2015, the Group sold its 100% participation in the subsidiary Aguas de Antofagasta S.A. together with its investment in Atacama
Aguasy Tecnologa Limitada and the Groups 50% share in Empresa Ferroviaria Andina. For more details of these transactions see Note 10.
With the exception of the Antofagasta Railway Company plc, all of the above Group companies have only one class of ordinary share capital
in issue. The Antofagasta Railway Company plc has ordinary and preference share capital in issue, with the ordinary share capital representing
76% of the Companys total share capital, and the preference share capital representing 24% of the Companys total share capital,
Antofagasta plc holds 100% of both the ordinary and preference share capital of the Antofagasta Railway Company plc.
GOVERNANCE
Nature of business
USA
USA
Jersey
BVI
BVI
Australia
Australia
Jersey
Jersey
USA
USA
Liechtenstein
BVI
USA
BVI
UK
UK
UK
UK
UK
UK
UK
UK
STRATEGIC REPORT
Country of operations
USA
USA
Jersey
BVI
BVI
Australia
Australia
Jersey
Jersey
USA
USA
Liechtenstein
BVI
USA
BVI
UK
UK
UK
UK
UK
UK
UK
UK
OVERVIEW
Country of incorporation
DMC (USA) LLC

DMC (USA) Corporation
Antofagasta Energy Jersey PCC
Antomin 2 Limited
Antomin Investors Limited
Antofagasta Minerals Adelaide Pty Limited
Antofagasta Minerals Perth Pty Limited
Los Pelambres Holding Company Limited
Los Pelambres Investment Company Limited
Anaconda South America Inc
Lamborn Land Co
Helleborus Anstalt
Morrisville Holdings Co
Bolivian Rail Investors Co Inc
Blue Ocean Overseas Inc
Antofagasta Metals Limited
Antofagasta Nickel Limited
Antofagasta (Chili) and Bolivia Railway Company. Limited
Antofagasta Holdings Limited
Antofagasta Minerals Limited
Antofagasta Gold Limited
Antofagasta Mining Limited
Antofagasta Copper Limited
17 Investment in associates and joint ventures

ATI
2015
$m
El Arrayn
2015
$m
Alto
Maipo
2015
$m
Minera
Zaldvar
2015
$m
Energa
Andina
2015
$m
Tethyan
Copper
2015
$m
78.3
8.8
24.5
8.3
42.8
1,001.7
11.2
1.3
(0.4)
4.0
(0.4)
(13.9)
(1.7)
12.3
(3.4)
8.9
(12.1)
75.1
(0.9)
0.2
(0.7)
8.1
(0.4)
(0.5)
(0.9)
23.2
(6.2)
2.5
(3.7)
33.5
(2.4)
(0.4)
(2.8)
998.9
(0.7)
0.2
(0.5)
10.3
(6.1)
(6.1)
(2.5)
Twin
Metals
2015
$m
Total
2015
$m
Total
2014
$m
67.4
198.1
48.1
1,001.7
175.2
21.6
(16.0)
(42.0)
(67.4) (67.4)
(4.4)
(1.4)
(5.8)
(12.1)
1,146.6
67.4
(1.2)
(2.9)
(4.1)
(20.0)
198.1
The investments which are included in the $1,146.6 million balance at 31 December 2015 are set out below:
(i) The Groups 40% interest in Inversiones Hornitos S.A., which owns the 165MW Hornitos thermoelectric power plant operating
inMejillones, in Chiles Antofagasta Region. The Group has a 16-year power purchase agreement with Hornitos for the provision
ofupto40MW of electricity for Centinela.
(ii) The Groups 30% interest in ATI, which operates a concession to manage installations in the port of Antofagasta.
Antofagasta plc 153
OTHER INFORMATION
Balance at the beginning of the year

Capital contribution
Acquisition
Gains/(losses) in fair value of cash flow
hedges deferred in reserves of associates
Derecognition of investment in associate
upon reclassification to subsidiary
Share of net profit/(loss) before tax
Share of tax
Share of income/(loss) from associates
Dividends received
Balance at the end of the year
Inversiones
Hornitos
2015
$m
17 Investment in associates and joint ventures continued

(iii) The Groups 30% interest in Parque Eolico El Arrayn S.A., which operates an 115MW wind-farm project, which entered into operation
inJune 2014. The Group has a 20-year power purchase agreement with Parque Eolico El Arrayn S.A. for the provision of up to 40MW
ofelectricity for Los Pelambres. The Group did not make any capital contributions to Parque Eolico El Arrayn S.A. during the year
(2014 $2.6 million).
(iv) The Groups interest in Alto Maipo SpA (Alto Maipo), which will develop, construct, own and operate two run-of-river hydroelectric
power stations located in the upper section of the Maipo River, approximately 50 kilometres to the southeast of Santiago, with a total
installed capacity of 531MW. In July 2013, the Group exercised an option to acquire a 40% interest in Alto Maipo for a consideration
of $50.2 million, and is responsible for its share of development costs. Alto Maipo has used derivative financial instruments to reduce
its exposure to interest rate movements in relation to the project financing and foreign exposure. A fair value loss of $13.9 million
(2014 $42.3 million loss) was recognised in relation to the mark-to-market of these derivative financial instruments with this amount
deferred in reserves as it forms part of a designated cash flow hedging relationship. During 2015, the Group made capital contributions
of $42.8 million (2014 nil). During the year, the Group also provided $63.9 million of loan financing (2014 $105.4 million) to Alto Maipo.
The balance due from Alto Maipo to the Group at 31 December 2015 was $229.7 million (2014 $152.4 million) representing loan
financing with an interest rate of six-month LIBOR plus 4.25%.
(v) As at 31 December 2014, the Group had a 40% interest in Twin Metals Minnesota LLC (Twin Metals), which is seeking to develop a
copper-nickel-PGM deposit in north-eastern Minnesota. The remaining 60% interest in Twin Metals was held by Duluth Metals Limited
(Duluth). As detailed in Note 19, in January 2015 the Group completed its acquisition of 100% of Duluth, resulting in the Group holding
a 100% interest in Twin Metals from that point. This has resulted in the Group consolidating 100% of the assets and liabilities relating to
Twin Metals with effect from January 2015, and accordingly the investment in associate balance relating to Twin Metals was derecognised
at that point.
Investment in joint ventures
(vi) The Groups 50% interest in Compaia Minera Zaldvar SpA (Zaldvar), which was acquired on 1 December 2015 (see Note 20).
Zaldvar is an open-pit, heap-leach copper mine located in Northern Chile, which produces approximately 100,000 tonnes of copper
cathodes annually. The total provisional consideration for the acquisition of the Groups 50% stake (including acquisition costs) was
$1,001.7 million. The consideration is subject to adjustments based on the net debt and working capital levels of Zaldvar at the completion
date, and it is currently expected that these adjustments will be finalised during the first half of 2016, allowing a final determination of the
total consideration and the fair value of the share of assets and liabilities acquired.
(vii) The Groups 50.1% (2014 50.1%) interest in Energa Andina, which is a joint venture with Origin Energy Geothermal Chile Limitada
(Origin) for the evaluation and development of potential sources of geothermal and solar energy.
(viii) The Groups 50% interest in Tethyan Copper Company Limited (Tethyan), which is a joint venture with Barrick Gold Corporation over
Tethyans mineral interests in Pakistan, which is now subject to international arbitration as set out in Note 37 below.
Summarised financial information for the associates and joint ventures is as follows:
Inversiones
Hornitos
2015
$m
Cash and cash equivalent

Current assets
Non-current assets
Current liabilities
Revenue
Profit/(loss) after tax
Other comprehensive income
Total comprehensive income/(expense)
ATI
2015
$m
El Arrayn
2015
$m
23.4
1.0
44.9
14.7
310.6 148.9
(28.1) (23.2)
(163.2) (114.3)
143.0
38.9
22.4
(2.7)
165.4
36.2
2.7
15.2
271.4
(13.5)
(198.7)
32.6
(3.0)
(1.2)
28.4
Alto
Maipo
2015
$m
Minera
Zaldvar
2015
$m
Energa
Andina
2015
$m
121.6
17.5
36.7
616.7
841.3 1,589.8
(102.4) (116.1)
(813.6)
(97.1)
51.7
(6.7)
(5.5)
(35.0)
(41.7)
46.2
1.2
19.6
(0.6)
(1.1)
(3.2)
(4.3)
Tethyan
Copper
2015
$m
Total
2015
$m
Total
2014
$m
2.1
169.5
0.2
728.4
0.3 3,181.9
(7.2) (291.1)
(0.2) (1,387.1)
266.2
(12.2)
(8.8)
(39.4)
(12.2)
218.0
75.0
80.8
1,476.3
(133.6)
(993.6)
212.9
(14.0)
(109.2)
(123.2)
Notes to the summarised financial information

(i) The summarised financial information is based on the amounts included in the IFRS financial statements of the associate or joint venture
(ie 100% of the results or balances of the associate or joint venture, rather than the Groups proportionate share), after the Groups fair
value adjustments.
(ii) The amounts shown above for Zaldvar reflect a provisional estimate of the fair value of the assets and liabilities acquired on 1 December
2015. The consideration payable for the Groups 50% stake in Zaldvar is subject to adjustments based on the net debt and working capital
levels of Zaldvar at the completion date (see Note 20) and it is currently expected that these adjustments will be finalised during the first
half of 2016, allowing a final determination of the total consideration and the fair value of the share of assets and liabilities acquired.
(iii) Non-current liabilities at Alto Maipo include a loan related to the project finance and financial derivatives of $192.7 million and subordinated
debt of $574.8.
2014
$m
15.6
0.2
(3.2)
(9.4)
(0.2)
(0.3)
2.7
16.6
5.9
(6.1)
(0.8)
15.6
Available-for-sale investments represent those investments which are not subsidiaries, associates or joint ventures and are not held for trading
purposes. The fair value of all equity investments are based on quoted market prices.
GOVERNANCE
The reclassification of $9.4 million is related to the acquisition of Duluth Metals Limited (Duluth). As at 31 December 2014, the Group held
17.2% of Duluths share capital, with a fair value of $9.4 million, accounted for as an available-for-sale investment. As explained in Note 19,
in January 2015 the Group completed its acquisition of 100% of Duluth. Duluth held a 60% stake in Twin Metals Minnesota Limited (Twin
Metals), a company in which the Group held a 40% stake as at December 2014. Accordingly, as a consequence of the acquisition of Duluth
the Group had a 100% interest in Duluth and, as a result of this, a 100% interest in Twin Metals. The principal asset of Twin Metals is its
copper-nickel-PGM deposit in north-eastern Minnesota, and the transaction has accordingly been accounted for as the acquisition by the
Group of the remaining 60% interest in that asset, with this $9.4 million balance forming part of the total consideration of that acquisition.
From January 2015, Twin Metals has therefore been consolidated as a 100% subsidiary of the Group, with this $9.4 million balance forming
part of the total consideration reflected in the accounting for the acquisition of the subsidiary.
STRATEGIC REPORT

Additions
Movement in fair value
Reclassification
Disposal
Foreign currency exchange differences
2015
$m
OVERVIEW
18 Available-for-sale investments
19 Duluth Metals Limited transaction
Immediately prior to the completion of the transaction the Group held 17.2% of Duluths share capital. The fair value of the consideration
transferred to acquire the remaining 82.8% of the share capital of Duluth in January 2015 was $44.3 million, reflecting the agreed acquisition
price of C$0.45 per share. In addition, transaction costs of $6.3 million have been included as part of the cost of the asset acquisition.
The carrying value of the Groups existing investment in associate balance relating to its 40% interest in Twin Metals at the date of the
transaction in January 2015 was $67.4 million, and the carrying value of the Groups existing available-for-sale investment balance relating
to its 17.2% holding of Duluths share capital at that date was $9.4 million. As part of the acquisition agreement the Group also agreed to
redeem convertible debentures previously issued by Duluth at a cash cost of $31.7 million, and has also acquired the other sundry net liabilities
of Duluth.
20 Compaia Minera Zaldvar SpA transaction

On 1 December 2015, Antofagasta completed its acquisition of a 50% stake in Compaia Minera Zaldvar SpA (Zaldvar) from Barrick Gold
Corporation (Barrick), pursuant to an agreement entered into on 30 July 2015. As a result, Antofagasta has become operator of the Zaldvar
mine. Zaldvar is an open-pit, heap-leach copper mine located in northern Chile, which produces approximately 100,000 tonnes of copper
cathodes annually.
Given that Antofagasta and Barrick have joint control over Zaldvar, Antofagasta is accounting for its 50% stake in Zaldvar as a joint venture.
Total consideration for the transaction was $1,005 million, subject to adjustments based on the net debt and working capital levels of Zaldvar
at the completion date. The consideration was wholly in cash, with $980 million payable upon closing (subject to the net debt and working
capital adjustments), and five annual payments of $5 million per year, starting in 2016. Provisional estimated adjustments in respect of the
net debt and working capital levels of Zaldvar at 1 December 2015 resulted in a provisional reduction in the consideration of $10.3 million to
$994.7 million. Including capitalised acquisition costs of $7.0 million the initial investment in joint venture balance is therefore $1,001.7 million.
It is currently expected that the net debt and working capital adjustments will be finalised during the first half of 2016, allowing a final
determination of the total consideration and the fair value of the share of assets and liabilities acquired.
Antofagasta plc 155
OTHER INFORMATION
This has resulted in the Group consolidating 100% of the assets and liabilities relating to Twin Metals with effect from January 2015.
The principal assets recognised at that date were an intangible asset balance of $150.1 million reflecting the value of the mining property
assets, and a property, plant and equipment balance of $20.8 million relating to land and buildings. In addition, a liability of $31.7 million was
recognised in respect of the Duluth convertible debentures, which were subsequently redeemed by the Group, along with $11.8 million of
other sundry net liabilities of Duluth and Twin Metals.
In January 2015, the Group completed its acquisition of 100% of Duluth Metals Limited (Duluth). The principal asset of Duluth was its 60%
stake in Twin Metals Minnesota Limited (Twin Metals), a company in which the Group held the remaining 40% stake as at December 2014.
The principal asset of Twin Metals is its copper-nickel-PGM deposit in north-eastern Minnesota, and the transaction has accordingly been
accounted for as the acquisition by the Group of the remaining 60% interest in that asset.
21 Inventories
Current:
Raw materials and consumables
Work-in-progress
Finished goods
Non-current:
Work-in-progress
Total
2015
$m
2014
$m
162.0
97.7
37.4
297.1
177.9
136.7
67.9
382.5
263.9
263.9
561.0
247.8
247.8
630.3
The amount of write down of inventory related to Net Realisable Value (NRV) recognised as an expense was $17.7 million at 31 December
2015 (2014 nil).
Non-current work-in-progress represents inventory expected to be processed more than 12 months after the balance sheet date.
22 Trade and other receivables

Trade and other receivables do not generally carry any interest, are principally short term in nature and are normally started at their nominal
value less any impairment.
Due in one year
Trade receivables
Other receivables
Loans provided to associates and joint ventures
Due after one year
Total
2015
$m
2014
$m
2015
$m
2014
$m
2015
$m
2014
$m
382.8
222.0
604.8
545.6
264.7
810.3
76.6
216.3
292.9
0.5
86.6
152.4
239.5
382.8
298.6
216.3
897.7
546.1
351.3
152.4
1,049.8
The largest balances of trade receivables are held with equity participants in the key mining projects. Many other significant trade receivables
are secured by letters of credit or other forms of security. The average credit period given on sale of goods and rendering of service is 41days
(2014 37 days). There is no material element which is interest-bearing. Trade receivables include mark-to-market adjustments in respect of
provisionally priced sales of copper and molybdenum concentrates which remain open as to final pricing. Where these have resulted in credit
balances, they have been reclassified to trade payables.
2014
$m
(4.9)
(0.1)
3.9
0.1
(1.0)
(5.6)
(0.2)
0.4
0.5
(4.9)
The ageing analysis of the trade receivables balance is as follows:

Past due but not impaired
Neither past due Up to 3 months
nor impaired
past due
$m
$m
2015
2014
892.4
1,035.4
1.0
7.5
36 months
More than 6
past due months past due
$m
$m
1.1
STRATEGIC REPORT

Charge for the year
Amounts written off
Disposal of subsidiaries
Unused amounts reversed
2015
$m
OVERVIEW
Movements in the provision for doubtful debts were as follows:
Total
$m
4.3
5.8
897.7
1,049.8
GOVERNANCE
With respect to the trade receivables that are neither past due nor impaired, there are no indications that the debtors will not meet their
payment obligations. The carrying value of the trade receivables recorded in the financial statements represents the Groups maximum
exposure to credit risk. The Group does nothold any collateral as security.
At 31 December 2015, the other receivables include $35.3 million (2014 $28.4 million) relating to prepayments.
23 Cash, cash equivalents and liquid investments
Cash, cash equivalents and liquid investments was comprised of:

Liquid investments
2014
$m
807.5
924.1
1,731.6
845.4
1,529.1
2,374.5
2015
$m
2014
$m
1,492.3
237.5
0.2
0.5
1.1
1,731.6
2,065.3
307.7
0.3
0.2
1.0
2,374.5
At 31 December 2015 and 2014, there is no cash which is subject to restriction.

The currency exposure of cash, cash equivalents and liquid investments was as follows:
US dollars
Chilean pesos
Australian dollars
Sterling
Other
Antofagasta plc 157
OTHER INFORMATION
2015
$m
The fair value of cash, cash equivalents and liquid investments is not materially different from the carrying values presented. The credit
risk on cash and cash equivalents is limited because the counterparties are banks with high credit ratings assigned by international creditrating agencies.
24 Borrowings
a) Analysis by type of borrowing
Borrowings may be analysed by business segment and type as follows:
Los Pelambres
Corporate loans
Short-term loan
Finance leases
Centinela
Project financing (senior debt)
Shareholder loan (subordinated debt)
Short-term loan
Finance leases
Antucoya
Project financing (senior debt)
Shareholder loan (subordinated debt)
Short-term loan
Finance leases
Corporate and other items
Finance leases
Long-term loans
Finance leases
Water concession
Long-term loan
Andino
Bonds
Short-term loans
Preference shares
Total
Notes
2015
$m
2014
$m
(i)
(ii)
(iii)
(52.3)
(312.1)
(7.9)
(87.2)
(206.0)
(12.5)
(iv)
(v)
(vi)
(vii)
(889.8)
(174.5)
(200.0)
(884.1)
(167.0)
(0.1)
(viii)
(ix)
(x)
(630.2)
(308.7)
(30.0)
(572.7)
(241.7)
(1.1)
(xi)
(24.6)
(29.7)
(xii)
(xiii)
(119.1)
(2.9)
(148.6)
(3.2)
(xiv)
(xv)
(xvi)
(xvii)
(xviii)
(14.6)
(3.0)
(2,755.1)
(3.0)
(1.5)
(3.1)
(2,376.1)
(i)
Corporate loans at Los Pelambres are unsecured and US dollar denominated. These loans have a remaining term of 2.5 years and have an
interest rate of LIBOR six-month plus margins of between 0.9%1.6%.
(ii)
Short-term loan (PAE) is US dollar denominated, and comprises a working capital loan for an average period of one year and has an
interest rate of LIBOR six-month rate plus margins of between 0.05%0.16%.
(iii) Finance leases at Los Pelambres are US dollar denominated, comprising $10.1 million at a fixed rate of 0.47% with a remaining duration
of2.5 years.
(iv) Senior debt at Centinela is US dollar denominated, and comprises $887.3 million in respect of syndicated loans. These loans are for a
remaining term of 4.5 years and have an interest rate of LIBOR six-month plus 1%. The loans are subject to financial covenants which
require that specified net debt to EBITDA and EBITDA to finance expense ratios are maintained.

The Group has used interest rate swaps to swap the floating rate interest for fixed rate interest. At 31 December 2015, the current
notional amount hedged of the senior debt at Centinela was $105.0 million.
(v)
Long-term US dollar denominated subordinated debt provided to Centinela by Marubeni Corporation, with a duration of 6.5 years and a
weighted average interest rate of LIBOR six-month plus 3.75%. Long-term subordinated debt provided by Group companies to Centinela
has been eliminated on consolidation.
(vi) Short-term loan (PAE) is US dollar denominated, and comprises a working capital loan for an average period of one year and has an
interest rate of LIBOR six-month plus margins of between 0.1%0.3%.
(vii) Finance leases at Centinela are US dollar denominated, with a remaining duration of 0.5 years and with an average interest fixed rate
atapproximately 1.3%.
(viii) Senior debt at Antucoya is US dollar denominated, and comprises $623.3 million in respect of syndicated loans. These loans are for
aremaining term of 11.5 years and have an interest rate of LIBOR 180 days plus 1.9%.
(ix) Long-term US dollar denominated subordinated debt provided to Antucoya by Marubeni Corporation, with a duration of 11.5 years and
an interest rate of LIBOR six-month plus 3.65%. Long-term subordinated debt provided by Group companies to Antucoya has been
eliminated on consolidation.
Short-term loan is US dollar denominated, and comprises a working capital loan for an average period of one year and has an interest rate
of LIBOR six-month plus 0.9%.
(xi) Finance leases at Antucoya are US dollar denominated, with a maximum remaining duration of 0.5 years and with an average interest rate
at approximately LIBOR three-month plus 2.89%.
OVERVIEW
(x)
(xii) Finance leases at Corporate and other items are denominated in Unidades de Fomento (ie inflation-linked Chilean pesos) and have
aremaining duration of 12.5 years and are fixed rate with an average interest rate of 5.29%.
(xiv) Finance leasing at Railway and other transport services are Chilean pesos denominated, with a maximum remaining duration of 2.5 years
and with a fixed interest rate of 4.8%.
(xv) Long-term loan at ADASA denominated in Unidades de Fomento (ie inflation-linked Chilean pesos) was derecognised as part of the
ADASA sale.
STRATEGIC REPORT
(xiii) Long-term loans at Railway and other transport services are US dollar denominated, and mainly comprise a loan for $148.6 million with
a duration of 4.5 years and with an interest rate of LIBOR six-month plus 0.48%.The Group has used interest rate swaps to swap the
floating rate interest for fixed rate interest. At 31 December 2015, the current notional amount hedged of the long-term debt at Railway
and other transport services was $120.0 million.
(xvi) Bond at Andino (FCA) was derecognised as part of the FCA sale.
(xvii) Short-term loans at Andino (FCA) were derecognised as part of the FCA sale.
GOVERNANCE
(xviii) The preference shares are sterling-denominated and issued by the Company. There were two million shares of 1 each authorised,
issued and fully paid at 31 December 2014. The preference shares are non-redeemable and are entitled to a fixed cumulative dividend
of5% per annum. On winding up they are entitled to repayment and any arrears of dividend in priority to ordinary shareholders, but are
not entitled to participate further in any surplus. Each preference share carries 100 votes in any general meeting of the Company.
b) Analysis of borrowings by currency
The exposure of the Groups borrowings to currency risk is as follows:
At 31 December 2015
At 31 December 2014
Other
$m
US dollars
$m
2015
Total
$m
(27.4)
(27.4)
(3.0)
(3.0)
(1,572.3)
(1,144.4)
(8.0)
(2,724.7)
(1,572.3)
(1,144.4)
(35.4)
(3.0)
(2,755.1)
Pesos
$m
Sterling
$m
Other
$m
US dollars
$m
2014
Total
$m
(33.3)
(33.3)
(3.1)
(3.1)
(16.1)
(16.1)
(1,544.0)
(766.3)
(13.3)
(2,323.6)
(1,544.0)
(782.4)
(46.6)
(3.1)
(2,376.1)
Antofagasta plc 159
OTHER INFORMATION
Corporate loans
Other loans (including short-term loans)
Finance leases
Preference shares
Sterling
$m
Corporate loans
Finance leases
Preference shares
Pesos
$m
24 Borrowings continued
c) Analysis of borrowings by type of interest rate
The exposure of the Groups borrowings to interest rate risk is as follows:
At 31 December 2015
Corporate loans
Finance leases
Preference shares
At 31 December 2014
Corporate loans
Finance leases
Preference shares
Fixed
$m
Floating
$m
2015
Total
$m
(27.5)
(3.0)
(30.5)
(1,572.3)
(1,144.4)
(7.9)
(2,724.6)
(1,572.3)
(1,144.4)
(35.4)
(3.0)
(2,755.1)
Fixed
$m
Floating
$m
2014
Total
$m
(22.1)
(45.3)
(3.1)
(70.5)
(1,544.0)
(760.3)
(1.3)
(2,305.6)
(1,544.0)
(782.4)
(46.6)
(3.1)
(2,376.1)
The above floating rate corporate loans include the project financing at Centinela and long-term loans at the Railway and other transport
services, where the Group has used interest rate swaps to swap the floating rate interest for fixed rate interest. At 31 December 2015, the
current notional amount hedged of the senior debt at Centinela was $105.0 million (2014 $140.0 million) and the current notional amount
hedged of the long-term loans at Railway and other transport services was $120.0 million (2014 $150.0 million).
d) Maturity profile
The maturity profile of the Groups borrowings is as follows:
At 31 December 2015
Corporate loans
Other loans
Finance leases
Preference shares
At 31 December 2014
Corporate loans
Other loans
Finance leases
Preference shares
Within
1 year
$m
Between
12 years
$m
Between
25 years
$m
After
5 years
$m
2015
Total
$m
(181.8)
(571.6)
(5.5)
(758.9)
(315.9)
(59.7)
(7.9)
(383.5)
(684.1)
(29.9)
(22.0)
(736.0)
(390.5)
(483.2)
(3.0)
(876.7)
(1,572.3)
(1,144.4)
(35.4)
(3.0)
(2,755.1)
Within
1 year
$m
Between
12 years
$m
Between
25 years
$m
After
5 years
$m
2014
Total
$m
(34.8)
(241.2)
(8.5)
(284.5)
(209.5)
(35.0)
(7.5)
(252.0)
(996.9)
(97.0)
(10.3)
(1,104.2)
(302.8)
(409.2)
(20.3)
(3.1)
(735.4)
(1,544.0)
(782.4)
(46.6)
(3.1)
(2,376.1)
The amounts included above for finance leases are based on the present value of minimum lease payments.
2014
$m
(6.8)
(9.0)
(8.6)
(19.6)
(44.0)
8.6
(35.4)
(10.4)
(8.2)
(14.2)
(25.0)
(57.8)
11.3
(46.5)
All leases are on a fixed payment basis and no arrangements have been entered into for contingent rental payments.
e) Borrowings facilities
The undrawn committed borrowing facilities available at the end of each year, in respect of which all conditions precedent had been met
atthose dates, were as follows:
2014
$m
1,378.1
1,563.2
53.1
15.4
1,378.1
1,631.7
GOVERNANCE
Expiring in one year or less

Expiring in more than one, but not more than two years
Expiring in more than two years
2015
$m
STRATEGIC REPORT
Within 1 year
Between 12 years
Between 25 years
After 5 years
Total minimum lease payment
Less amounts representing finance charges
Present value of minimum lease payment
2015
$m
OVERVIEW
The total minimum lease payments for these finance leases may be analysed as follows:
The available facilities comprise general working capital facilities at the Groups operating subsidiaries all of which were undrawn at the end
ofeach year. Ofthese facilities, $1,351.7 million (2014 $1,548.6 million) are denominated in US dollars, $26.4 million (2014 $24.3 million)
inUnidades de Fomento (ie inflation-linked Chilean pesos), nil (2014 nil) in Euro and nil (2014 $58.8 million) in Chilean pesos.
Due in one year
Trade payables
Other payables and accruals
Due after one year
Total
2015
$m
2014
$m
2015
$m
2014
$m
2015
$m
2014
$m
(207.6)
(271.3)
(478.9)
(406.5)
(387.3)
(793.8)
(24.4)
(24.4)
(4.8)
(4.8)
(207.6)
(295.7)
(503.3)
(406.5)
(392.1)
(798.6)
OTHER INFORMATION
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.
The average credit period taken for trade purchases is 30 days (2014 48 days).
26 Financial instruments and financial risk management

a) Categories of financial instruments
The Groups financial instruments, grouped according to the categories defined in IAS 39 Financial instruments: Recognition and
Measurement, are asfollows:
Financial assets
Derivatives in designated hedge accounting relationships
Loans and receivables at amortised cost (including cash and cash equivalents)
Fair value through profit and loss (liquid investments and mark-to-market debtors)
Financial liabilities
Financial liabilities measured at amortised cost
Fair value through profit and loss (mark-to-market payables)
25 Trade and other payables
2015
$m
2014
$m
0.2
2.7
1,703.9
925.4
0.2
15.6
1,895.2
1,529.1
(3.5)
(3,235.5)
(22.9)
(629.7)
(11.0)
(3,104.1)
(70.6)
254.4
Antofagasta plc 161
26 Financial instruments and financial risk management continued

b) Fair value of financial instruments
The fair values of financial assets and financial liabilities are determined as follows:
the fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are
determined with reference to quoted market prices;
the fair values of other financial assets and financial liabilities (excluding derivative instruments) are determined in accordance with generally
accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions; and
the fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, use is made of discounted
cash flow analysis based on the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing
models for optional derivatives.
The fair value of each category of financial asset and liability is not materially different from the carrying values presented for either 2015
or 2014.
Financial assets and liabilities measurement as fair value through profit and loss are designated as such upon initial recognition.
The following table provides an analysis of the financial instruments that are measured subsequent to initial recognition at fair value,
groupedinto levels 1to 3 based on the degree to which the fair value is observable:
level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the
asset or liability, either directly (ie as prices) or indirectly (ie derived from prices); and
level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based
onobservable market data (unobservable inputs).
Financial assets
Debtors mark-to-market
Fair value through profit and loss
Financial liabilities
Creditors mark-to-market
Level 1
$m
Level 2
$m
Level 3
$m
Total
2015
$m
Total
2014
$m
2.7
925.4
0.2
1.3
0.2
2.7
1.3
925.4
0.2
15.6
1,529.1
928.1
(3.5)
(22.9)
(24.9)
(3.5)
(22.9)
903.2
(11.0)
(70.6)
1,463.3
There were no transfers between level 1 and 2 during the year.

c) Financial risk management
The Groups activities expose it to a variety of financial risks: market risk (including commodity price risk, currency risk, interest rate risk and
other price risk), credit risk and liquidity risk. The Group uses derivative financial instruments, in general to reduce exposure to commodity
price, foreign exchange and interest rate movements. The Group does not use such derivative instruments for speculative trading purposes.
The Board of Directors is responsible for overseeing the Groups risk management framework. The Audit and Risk Committee assists
the Board withits review of the effectiveness of the risk management process, andmonitoring of key risks and mitigations. Internal Audit
undertakes both regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to the Audit and
Risk Committee.
(i) Commodity price risk
The Group generally sells its copper and molybdenum concentrate and copper cathodes output at prevailing market prices, subject to final
pricing adjustments which may range from one to five months after delivery to the customer, and it is therefore exposed to changes in market
prices for copper and molybdenum both in respect of future sales and previous sales which remain open as to final pricing. In 2015, sales
of copper and molybdenum concentrate and copper cathodes represented 90.7% of Group turnover and therefore revenues and earnings
depend significantly on LME and realised copper prices.
The Group uses futures, min-max instruments and options to manage its exposure to copper prices. These instruments may give rise to
accounting volatility due to fluctuations in their fair value prior to the maturity of the instruments. Details of those copper and molybdenum
concentrate sales and copper cathode sales which remain open as to final pricing are given in Note 5. Details of commodity rate derivatives
entered into by the Group are given in Note 26(d).
If the copper forward price as at the reporting date had decreased by 10 cents, net earnings would have decreased by $17.2 million (2014
decrease by $16.5 million) and hedging reserves in equity would have increased less than $0.4 million (2014 increase less than $0.1 million).
(ii) Currency risk

The Group is exposed to a variety of currencies. The US dollar, however, isthe currency in which the majority of the Groups sales are
denominated. Operating costs are influenced by the countries in which the Groups operations are based (principally in Chile) as well as those
currencies in which the costs of imported equipment and services are determined. After the US dollar, the Chilean peso is the most important
currency influencing costs and to a lesser extent sales.
When considered appropriate, the Group uses forward exchange contracts and currency swaps to limit the effects of movements in exchange
rates in foreign currency denominated assets and liabilities. The Group may also use these instruments to reduce currency exposure on future
transactions and cash flows. Details of any exchange rate derivatives entered by the Group in the year are given in Note 26.(d).
The currency exposure of the Groups cash, cash equivalents and liquid investments is given in Note 23, and the currency exposure of the
Groups borrowings is given in Note 26.b. The effects of exchange gains and losses included in the income statement are given in Note 5.
Exchange differences on translation of the net assets of entities with a functional currency other than the US dollar (the most material of which
is Aguas de Antofagasta S.A.) are taken to the currency translation reserve and are disclosed in the Consolidated statement of changes in
equity on page 123.
The impact on profit or loss is as a result of the retranslation of monetary financial instruments (including cash, cash equivalents, liquid
investments, trade receivables, trade payables and borrowings). The impact on equity is as a result of changes in the fair value of derivative
instruments which are effective designated cash flow hedges, and changes in the fair value of available-for-sale equity investments.
The calculation assumes that all other variables, such as interest rates, remain constant.
If the US dollar had strengthened by 10% against the Chilean peso as at the reporting date, net earnings would have decreased by $2.9 million
(2014 decrease by $6.2 million); and hedging reserves in equity would have decreased by nil (2014 decrease by $6.1 million). If the US dollar
had weakened by 10% against the Chilean peso as at the reporting date, net earnings would have increased by $1.7 million (2014 increased
by $15.2 million); and hedging reserves in equity would have increased by nil (2014 increase by $ 0.7 million).
(iii) Interest rate risk
The Groups policy is generally to borrow and invest cash at floating rates. Fluctuations in interest rates may impact the Groups net finance
income orcost, and to a lesser extent on the value of financial assets and liabilities. TheGroup occasionally uses interest rate swaps and collars
to manage interest rate exposures on a portion of its existing borrowings. Details of any interest rate derivatives entered into by the Group are
given in Note 26(d)(i).
Interest rate exposure of the Groups borrowings is given in Note 24.
Antofagasta plc 163
OTHER INFORMATION
Currency sensitivity
The sensitivity analysis below shows the impact of a movement in the US dollar/Chilean peso exchange rate on the financial instruments held
as at thereporting date.
Given the significance of the US dollar to the Groups operations, this is the presentational currency of the Group for internal and external
reporting. TheUS dollar is also the currency for borrowing and holding surplus cash, although a portion of this may be held in other currencies,
notably Chilean pesos and sterling, to meet short-term operational and capital commitments and dividend payments.
GOVERNANCE
In addition, a movement in the average copper price during the year would impact revenue and earnings. A 10 cents change in the average
copper price during the year would have affected net earnings by $62.5 million (2014 $64.7 million) and earnings per share by 6.3 cents
(2014 6.6 cents), based on production volumes in 2015, without taking into account the effects of provisional pricing and hedging activity.
A$1 change in the average molybdenum price for the year would have affected net earnings by $9.4 million (2014 $7.0 million), and earnings
per share by 1.0 cents (2014 0.7 cents), based on production volumes in 2015, and without taking into account the effects of provisional
pricing. A $100 change in the average gold price for the year would have affected net earnings by $10.4 million (2014 $9.7 million), and
earnings per share by 1.1 cents (2014 1.0 cents), based on production volumes in 2015, and without taking into account the effects of
provisional pricing.
STRATEGIC REPORT
If the copper forward price as at the reporting date had increased by 10 cents, net earnings would have increased by $18.5 million
(2014 increase by $16.5 million) and hedging reserves in equity would have decreased less than $0.4 million (2014 decrease less
than$0.1 million).
OVERVIEW
Commodity price sensitivity

The sensitivity analysis below shows the impact of a movement in the copper price on the financial instruments held as at the reporting
date. Amovement in the copper forward price as at the reporting date will affect the final pricing adjustment to sales which remain open at
that date, impacting the trade receivables balance and consequently the income statement. A movement in the copper forward price will
also affect the valuation of commodity derivatives, impacting the hedging reserve in equity if the fair value movement relates to an effective
designated cash flow hedge, and impacting the income statement if it does not. The calculation assumes that all other variables, such as
currency rates, remain constant.

Interest rate sensitivity
The sensitivity analysis below shows the impact of a movement in interest rates in relation to the financial instruments held as at the reporting
date. The impact on profit or loss reflects the impact on annual interest expense in respect of the floating rate borrowings held as at the
reporting date, and the impact on annual interest income in respect of cash and cash equivalents held as at the reporting date. The impact
onequity is as a result of changes in the fair value of derivative instruments which are effective designated cash flow hedges. The calculation
assumes that all other variables, such as currency rates, remain constant.If the interest rate increased by 1%, based on the financial
instruments held as at the reporting date, net earnings would have increased by $4.4 million (2014 increase by $2.5 million) and hedging
reserves in equity would have increased by $0.7 million (2014 increase by $0.3 million). This does not include the effect on the income
statement of changes in thefair value of the Groups liquid investments relating tothe underlying investments in fixed income instruments.
(iv) Other price risk
The Group is exposed to equity price risk on its available-for-sale equity investments.
Equity price sensitivity
The sensitivity analysis below shows the impact of a movement in the equity values of the available-for-sale financial assets held as at the
reporting date.
If the value of the available-for-sale investments had increased by 10% as at the reporting date, equity would have increased by $0.3 million
(2014 increase by $1.6 million). There would have been no impact on the income statement.
(v) Cash flow risk
The Groups future cash flows depend on a number of factors, including commodity prices, production and sales levels, operating costs,
capital expenditure levels and financial income and costs. Its cash flows are therefore subject to the exchange, interest rate and commodity
price risks described above as well as operational factors and input costs. To reduce the risk of potential short-term disruptions to the supply
of key inputs such as electricity and sulphuric acid, the Group enters into medium- and long-term supply contracts to help ensure continuity
ofsupply. Longterm electricity supply contracts are in place at each of the Groups mines, in most cases linking the cost of electricity under
the contract to the current cost of electricity on the Chilean grids. The Group seeks to lock in supply of sulphuric acid for future periods of a year
or longer, with contract prices agreed in the latter part of the year, to be applied to purchases of acid in the following year. Further information
on production and sales levels and operating costs aregiven in the Operational review on page 39.
(vi) Credit risk
Credit risk arises from trade and other receivables, cash, cash equivalents, liquid investments and derivative financial instruments. The Groups
credit risk is primarily to trade receivables. The credit risk on cash, cash equivalents and liquid investments and on derivative financial
instruments is limited as the counterparties are financial institutions with high credit ratings assigned by international credit agencies.
All customers are subject to credit review procedures, including the use ofexternal credit ratings where available. Credit is provided only
within setlimits, which are regularly reviewed. The main customers are recurrent with a good credit history during the years while they have
been customers.
Outstanding receivable balances are monitored on an ongoing basis.
The carrying value of financial assets recorded in the financial statements represents the maximum exposure to credit risk. The amounts
presented inthe balance sheet are net of allowances for any doubtful receivables.
As detailed in Note 17, the Group has provided a total of $229.7 million of loan financing to its associated company Alto Maipo SpA (Alto
Maipo). This loan financing forms part of the Groups total funding of the Alto Maipo project, along with the capital contributions the Group
has made to Alto Maipo, and the recovery of this balance will derive from the cash flows generated by the project once construction has
completed and the project is operational.
(vii) Liquidity risk
The Group manages liquidity risk by maintaining adequate cash reserves and financing facilities, through the review of forecast and actual
cash flows.
The Group typically holds surplus cash in demand or term deposits or highly liquid investments, which typically can be accessed or liquidated
within 24hours.
The majority of borrowings comprise corporate loans at Los Pelambres, repayable over periods of up to three years, corporate loans at
Centinela Concentrates, repayable over approximately seven years and Antucoya long-term subordinated debt repayable over approximately
12 years.
At the end of 2015, the Group was in a net debt position (2014 net debt position), asdisclosed in Note 33.(c). Details of cash, cash
equivalents and liquid investments are given in Note 23, while details of borrowings including thematurity profile are given in Note 24.(d).
Details of undrawn committed borrowing facilities are also given in Note 24.(e).
At 31 December 2015
At 31 December 2014
Between
12 years
$m
After
2 years
$m
2015
Total
$m
(309.0)
(200.2)
(2.8)
(477.0)
(1.0)
(990.0)
(286.5)
(29.6)
(2.7)
(1.9)
(1.1)
(321.8)
(276.9)
(59.5)
(7.9)
(3.0)
(23.7)
(1.5)
(372.5)
(1,231.4)
(708.9)
(22.0)
(0.7)
(1,963.0)
(2,103.8)
(998.2)
(35.4)
(3.0)
(503.3)
(3.6)
(3,647.3)
Less than
6months
$m
Between
6 months
to 1 year
$m
Between
12 years
$m
After
2 years
$m
2014
Total
$m
(41.9)
(208.5)
(4.5)
(785.8)
(5.6)
(1,046.3)
(49.7)
(34.8)
(4.6)
(8.0)
(1.9)
(99.0)
(357.8)
(36.7)
(7.6)
(3.1)
(4.2)
(2.4)
(411.8)
(1,568.9)
(607.8)
(29.9)
(0.6)
(1.1)
(2,208.3)
(2,018.3)
(887.8)
(46.6)
(3.1)
(798.6)
(11.0)
(3,765.4)
GOVERNANCE
Corporate loans
Finance leases
Preference shares
Between
6 months
to 1 year
$m
STRATEGIC REPORT
Corporate loans
Finance leases
Preference shares*
Less than
6months
$m
OVERVIEW
The following table analyses the maturity of the Groups contractual commitments in respect of its financial liabilities and derivative financial
instruments. The table has been drawn up based on the undiscounted cash flows on the earliest date on which the Group can be required
topay. Thetable includes both interest and principal cash flows.
*T
he preference shares pay an annual dividend of 100,000 ($160,334) in perpetuity, and accordingly it is not possible to determine total amounts payable for periods without a fixed end date.
The Group occasionally uses derivative financial instruments, in general to reduce its exposure to commodity price, foreign exchange and
interest rate movements. The Group does not use such derivative instruments for speculative trading purposes.
The Group has applied the hedge accounting provisions of IAS 39 Financial Instruments: Recognition and Measurement. Changes in the
fair value of derivative financial instruments that are designated and effective as hedges of future cash flows have been recognised directly
in equity, with such amounts subsequently recognised in the income statement in the period when the hedged item affects profit or loss.
Any ineffective portion is recognised immediately in the income statement. Realised gains and losses on commodity derivatives recognised
in the income statement have been recorded within revenue. Thetime value element of changes in the fair value of derivative options is
excluded from the designated hedging relationship, and is therefore recognised directly in the income statement within other finance items.
Realised gains and losses and changes in the fair value of exchange and interest derivatives are recognised within other finance items for
those derivatives where hedge accounting has not been applied. When hedge accounting has been applied the realised gains and losses
onexchange and interest derivatives are recognised within other finance items and interest expense respectively.
Antofagasta plc 165
OTHER INFORMATION
d) Derivative financial instruments
(viii) Capital risk management

The Groups objectives are to return capital to shareholders while leaving the Group with sufficient funds to progress its short-, medium- and
long-term growth plans as well as preserving the financial flexibility to take advantage of opportunities as they may arise. This policy remains
unchanged. The Group monitors capital on the basis of net cash (defined as cash, cash equivalents and liquid investments less borrowings)
which was a net debt by $1,023.5 million at 31 December 2015 (2014 net debt $1.6 million), as well as gross cash (defined as cash, cash
equivalents and liquid investments) which was $1,731.6 million at 31December 2015 (2014 $2,374.5 million). The Groups total cash is
held in a combination of on demand and term deposits and managed funds investing inhigh-quality, fixed income instruments. Some of the
managed funds have been instructed to invest in instruments with average maturities greater than 90days. These amounts are presented as
liquid investments but are included in net cash for monitoring and decision-making purposes. The Group has ariskaverse investment strategy.
The Groups borrowings are detailed in Note 24. Additional project finance or shareholder loans are taken out by the operating subsidiaries
tofund projects on a case-by-case basis.

(i) Mark-to-market adjustments and income statement impact
The gains or losses recorded in the income statement or in reserves during the year, and the fair value recorded on the balance sheet at the
end of the year in respect of derivatives are as follows:
Impact on income statement
Commodity derivatives
Centinela
Exchange derivatives
Antucoya
Interest derivatives
Centinela
Impact on reserves
Fair value recorded

on balance sheet
Net financial
asset/(liability)
31 December
2015
$m
Realised
gains/(losses)
2015
$m
Gains resulting from

mark-to-market
adjustments on
hedging instruments
2015
$m
Total net
gain/(loss)
2015
$m
Gains/(Losses)
resulting from
mark-to-market
adjustments on
hedging instruments
2015
$m
(0.1)
(0.1)
(0.1)
0.1
0.2
0.2
4.0
(3.6)
(2.3)
(5.8)
(3.6)
(2.3)
(5.8)
3.1
0.5
7.5
(2.9)
(0.5)
(3.3)
Impact on income statement
Impact on reserves
Fair value recorded on

balance sheet
Net financial
asset/(liability)
31 December 2014
$m
Centinela
Michilla
Exchange derivatives
Michilla
Antucoya
Interest derivatives
Centinela
Realised
gains/(losses)
2014
$m
Losses resulting from

mark-to-market
adjustments on
hedging instruments
2014
$m
Total net
gain/(loss)
2014
$m
Gains/(losses) resulting
from mark-to-market
adjustments on
hedging instruments
2014
$m
0.1
18.3
(5.0)
0.1
13.3
0.6
(6.2)
0.2
(4.1)
(0.1)
(4.1)
(0.1)
(1.7)
(3.8)
(4.0)
(4.8)
(1.0)
8.5
(5.1)
(4.8)
(1.0)
3.4
3.4
(1.0)
(8.7)
(6.0)
(1.0)
(10.8)
The gains/(losses) recognised in reserves are disclosed before non-controlling interests and tax.
At December 2015, the credit risk implicit in the liability is $0.1 million (2014 $0.1 million). The differences between the carrying amount and
the amount the entity would be contractually required to pay at the maturity date are not material.
The net financial asset/(liability) resulting from the balance sheet mark-to-market adjustments are analysed as follows:
Analysed between:
Current assets
Current liabilities
2015
$m
2014
$m
0.2
(2.0)
(1.5)
(3.3)
0.2
(7.5)
(3.5)
(10.8)
OVERVIEW
(ii) Outstanding derivative financial instruments

The Group periodically uses commodity derivatives to reduce its exposure to fluctuation in the copper price.
a) Futures arbitrage
The Group also has futures for copper production to swap COMEX price exposure for LME price exposure according to the Groups
pricing policy.
At 31 December 2015
For instruments held at 31 December 2015
Weighted average remaining

period from 1 January 2016
Months
0.1
Covering a
period up to:
31/1/2016
b) Interest derivatives
The Group periodically uses interest derivatives to reduce its exposure to interest rate movements.
STRATEGIC REPORT
Centinela
Copper production
hedged
tonnes
300
Interest rate swaps

The Group has used interest rate swaps to swap the floating rate interest relating to the Centinela project financing and long-term loans at the
Railway for fixed rate interest. At 31 December 2015, theGroup had entered into the contracts outlined below.
Start date
Maturity date
15/2/2011
12/8/2014
15/8/2018
12/8/2019
105.0
120.0
Weighted average
fixed rate
%
3.372
1.634
GOVERNANCE
Maximum notional
amount
$m
The actual notional amount hedged depends upon the amount of the related debt currently outstanding.
27 Long-term incentive plan
Details of the Awards

Under the Plan, the Group may grant awards based on the price of ordinary shares in the Company and cannot grant awards over
actual shares.
Restricted Awards: These awards are conditional rights to receive cash payment by reference to a specified number of the Companys
ordinary shares, subject to the relevant employee remaining employed by the Group when the Restricted Award vests; and
When awards vest under the Plan, participants become entitled to receive a cash payment by reference to the number and portion of
awards that have vested and the market value of the Companys ordinary shares on the date of vesting. There is no exercise price payable
byparticipants in respect oftheawards.
Restricted Awards can only vest in full if participants remain employed by the Group for three years from the date that Restricted Awards are
granted. Inordinary circumstances, the first one-third of a Restricted Award will vest after one year, the second one-third will vest after two
years and the remaining one-third will vest after three years. There are no performance criteria attached to Restricted Awards. The fair value
of Restricted Awards granted under the Plan is recorded as a compensation expense over the vesting periods, with a corresponding liability
recognised for the fair value of the liability at the end of each period until settled.
Performance Awards only vest if certain performance criteria are met. The performance criteria reflect a number of factors including total
shareholder return, earnings levels, growth in the Groups reserves and resources and project delivery targets. The fair value of Performance
Awards under the Plan is recorded as a compensation expense over the vesting period, with a corresponding liability at the end of each period
until settled.
A One-off Award was granted to Diego Hernndez, the Group CEO, following his appointment during 2012. This award was granted for
the same purpose as the awards granted under the LTI Plan but by reference to metrics which are specific to the participants role as CEO.
The award vested during 2015.
Antofagasta plc 167
OTHER INFORMATION
Performance Awards: These awards are conditional rights to receive cash payment by reference to a specified number of the Companys
ordinary sharessubject to both the satisfaction of a performance condition and the relevant employee remaining employed by the Group
when the Performance Award vests.
The long-term incentive plan (the Plan) was introduced at the end of 2011. Awards granted pursuant to the Plan form part of the
remuneration of senior managers in the Group. Directors are not eligible to participate in the Plan.
27 Long-term incentive plan continued

Valuation process and accounting for the awards
The fair value of the awards is determined using a Monte Carlo simulation model. The inputs into the Monte Carlo simulation model are
as follows:
Weighted average forecast share price at vesting date
Expected volatility
Expected life of awards
Expected dividend yields
Risk free rate
2015
2014
$10.07
27.31%
3 years
1.90%
0.13%
$11.46
28.32%
3 years
2.45%
1.30%
Expected volatility was determined by calculating the historical volatility of the Groups share price over the previous five years. The expected
life of awards used in the model has been adjusted based on managements best estimate for the effects of non-transferability and compliance
of the objectives determined according to the characteristic of each plan.
The number of awards outstanding at the end of the year is as follows:
Outstanding at 1 January 2015

Granted during the year
Cancelled during the year
Payments during the year
Outstanding at 31 December 2015
Number of awards that have vested
Restricted
Awards
Performance
Awards
One-off
Award
577,319
359,786
(64,123)
(203,118)
669,864
369,302
787,222
359,786
(127,692)
1,019,316
83,496
(83,496)
The Group has recorded a liability for $8.9 million at 31 December 2015, of which $3.4 million is due after more than one year (31 December
2014 $8.9 million, of which $4.9 million was due after more than one year) and total expenses of$4.0 million for the year (2014 expense
of$5.8 million). The intrinsic value is $8.9 million.
28 Post-employment benefit obligations

a) Defined contribution schemes
The Group operates defined contribution schemes for a limited number of employees. The amount charged to the income statement in 2015
was $0.1 million (2014 $0.2 million), representing the amount paid in the year. There were no outstanding amounts which remain payable at
the end of either year.
b) Severance provisions
Employment terms at some of the Groups operations provide for payment of a severance indemnity when an employment contract comes
toan end. This is typically at the rate of one month for each year of service (subject in most cases to a cap as to the number of qualifying years
of service) and based onfinal salary level. The severance indemnity obligation is treated as an unfunded defined benefit plan, and the obligation
recognised is based on valuations performed by an independent actuary using the projected unit credit method, which are regularly updated.
The obligation recognised in the balance sheet represents the present value of the severance indemnity obligation. Actuarial gains and losses
are immediately recognised in other comprehensive income.
The most recent valuation was carried out in 2015 by Ernst & Young, a qualified actuary in Chile who is not connected with the Group.
Average nominal discount rate

Average rate of increase in salaries
Average staff turnover
2015
2014
4.8%
1.6%
8.6%
4.5%
2.6%
5.0%
2015
$m
2014
$m
(16.6)
(4.1)
15.5
(5.2)
(17.2)
(3.5)
12.0
(8.7)
2015
$m
2014
$m
(103.0)
(16.6)
2.3
(3.6)
(4.1)
(0.3)
14.0
8.9
15.5
(86.9)
(91.2)
(17.2)
(18.0)
0.1
(3.5)
1.1
13.7
12.0
(103.0)
OVERVIEW
The main assumptions used to determine the actuarial present value of benefit obligations were as follows:
Amounts included in the income statement in respect of severance provisions are as follows:
STRATEGIC REPORT
Current service cost (charge to operating profit)

Interest cost (charge to interest expenses)
Foreign exchange credit to other finance items
Total charge to income statement
Movement in the present value of severance provisions were as follows:
31 December 2015
31 December 2014
4.84%
4.53%
20-year Chilean Central Bank Bonds 20-year Chilean Central Bank Bonds
Governmental
Governmental
AA-/AA+
AA-/AA+
Secondary
Secondary
Chilean peso
Chilean peso
3 December 2015
3 December 2014
Bloomberg
Bloomberg
The discount rate is the interest rate used to discount the estimated future severance payments to their present value. The table below shows
the principal instruments and assumptions utilised in determining the discount rate:
Rate of increase in salaries
This represents the estimated average rates of future salary increases, reflecting likely future promotions and other changes. This has been
based on historical information for the Group for the period from 2012 to 2015.
Turnover rate
This represents the estimated average level of future employee turnover. This has been based on historical information for the Group for the
period from 2012 to 2015.
Antofagasta plc 169
OTHER INFORMATION
Nominal discount rate

Reference rate name
Governmental or corporate rate
Reference rating
Corresponds to an Issuance market (primary) or secondary market
Issuance currency associated to the reference rate
Date of determination of the reference interest rate
Source of the reference interest rate
Assumptions description
Discount rate
GOVERNANCE

Current service cost
Actuarial gains/(losses)
Charge capitalised
Interest cost
Reclassification
Paid in the year
Disposals of subsidiaries
28 Post-employment benefit obligations continued

Sensitivity analysis
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and staff turnover.
The sensitive analysis below has been determined based on reasonably possible changes of the respective assumptions occurring at the end
of the reporting period, while holding all other assumptions constant.
If the discount rate is 100 basis points higher the defined benefit obligation would decrease by $7.0 million. If the discount rate is 100 basis
points lower the defined benefit obligation would increase by $8.2 million.
If the expected salary growth increases by 1% the defined benefit obligation would increase by $7.5 million. If the expected salary growth
decreases by 1% the defined benefit obligation would decrease by $6.5 million.
If the staff turnover increases by 1% the defined benefit obligation would decrease by $0.1 million. If the staff turnover decreases by
1%the defined benefit obligation would increase by $0.1 million.
29 Deferred tax and liabilities

The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during 2015 and 2014.
At 1 January 2014
(Charge)/credit to income
Reclassification
Charge deferred in equity
At 1 January 2015
(Charge)/credit to income
Charge capitalised
Charge deferred in equity
At 31 December 2015
Accelerated
capital
allowances
$m
Temporary
differences on
provisions
$m
Withholding
tax
$m
Short-term
differences
$m
Mining tax
(Royalty)
$m
Tax losses
$m
Total
$m
(720.0)
(257.3)
(977.3)
(99.3)
8.8
(1,067.8)
108.0
50.5
158.5
(24.1)
(1.4)
133.0
(232.0)
222.5
(9.5)
(1.9)
(11.4)
(10.9)
0.2
0.3
4.2
(6.2)
56.0
(0.8)
49.0
(35.0)
(7.2)
(42.2)
(12.9)
(55.1)
0.9
0.6
1.5
(0.8)
0.7
(889.0)
9.3
0.3
4.2
(875.2)
(83.0)
(0.8)
8.8
(1.4)
(951.6)
The credit to the income statement of $83.0 million (2014 $9.3 million charge) includes a credit for foreign exchange differences
of$1.1 million (2014 includes a credit of $2.9 million).
Certain deferred tax assets and liabilities have been offset. Deferred tax assets and liabilities are offset where the Group has a legally
enforceable right to doso. The following is the analysis of the deferred tax balance (after offset):
Deferred tax assets

Net deferred tax balances
2015
$m
2014
$m
124.6
(1,076.2)
(951.6)
104.6
(979.8)
(875.2)
At 31 December 2015, the Group had unused tax losses of $9.9 million (2014 $14.3 million) available for offset against future profits.
A deferred tax asset of $2.7 million has been recognised in respect of these losses in 2015 (2014 $1.5 million). These losses may be carried
forward indefinitely.
At 31 December 2015, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which
deferred tax liabilities have not been recognised was $4,963.9 million (2014 $4,520.4 million). No liability has been recognised in respect of
these differences because the Group is in a position to control the timing of the reversal of the temporary differences and it is likely that such
differences will not reverse in the foreseeable future.
Temporary differences arising in connection with interests in associates are insignificant.
The deferred tax balance of $951.6 million (2014 $875.2 million) includes $965.0 million (2014 $951.6 million) due in more than one year.
All amounts are shown as non-current on the face of the balance sheet as required by IAS 12.
2014
$m

(Charge)/credit to operating profit in the year
Release of discount to net interest in the year
Actuarial gain/(loss)
Capitalised adjustment to provision
Reclassification
Utilised in year
Disposal
(434.3)
(25.8)
(5.0)
35.7
30.1
1.5
3.8
(394.0)
(494.3)
7.4
(5.6)
0.6
48.1
0.9
6.2
2.4
(434.3)
Analysed as follows:
Decommissioning and restoration
Termination of Water concession
(394.0)
(394.0)
(432.6)
(1.7)
(434.3)
Decommissioning and restoration costs relate to the Groups mining operations. Costs are estimated on the basis of a formal closure plan
and are subject to regular independent formal review. It is estimated that the provision will be utilised from 2024 until 2059 based on current
mine plans.
GOVERNANCE
a) Decommissioning and restoration
STRATEGIC REPORT
2015
$m
OVERVIEW
30 Decommissioning and restoration and other long-term provisions
During the year ended 31 December 2015, the decommissioning and restoration provisions at the Groups mining operations decreased
byanet total of $38.6 million.
31 Share capital and other reserves

(i) Share capital
The ordinary share capital of the Company is as follows:
Issued and fully paid

2014
Number
2015
$m
2014
$m
1,300,000,000
1,300,000,000
118.9
118.9
2015
Number
2014
Number
2015
$m
2014
$m
985,856,695
985,856,695
89.8
89.8
The Company has one class of ordinary shares which carry no right to fixed income. Each ordinary share carries one vote at any
general meeting.
There were no changes in the authorised or issued share capital of the Company in either 2014 or 2015. Details of the Companys preference
share capital, which is included within borrowings in accordance with IAS 32, are given in Note 24(a)(xviii).
Antofagasta plc 171
OTHER INFORMATION
Authorised
2015
Number
The balance at the end of the year includes $31.7 million of provision related to Michilla. Following the cessation of production at Michilla
thecurrent expectation is that the majority of the closure costs will be incurred during the next three years.
31 Share capital and other reserves continued

(ii) Other reserves and retained earnings
Details of the share premium account, hedging, fair value and translation reserves and retained earnings for both 2015 and 2014 are included
within the Consolidated statement of changes in equity on page 123.
Hedging reserves1
At 1 January
Parent and subsidiaries net cash flow hedge fair value gains/(losses)
Parent and subsidiaries net cash flow hedge gains/(losses) transferred to the income statement
Share of other comprehensive income/(losses) of equity accounted units, net of tax
Tax on the above
At 31 December
Available-for-sale revaluation reserves2
At 1 January
Gain/(losses) on available-for-sale investment
(Losses)/gain on available-for-sale securities transferred to the income statement
Tax on the above
At 31 December
Foreign currency translation reserves3
At 1 January
Parent and subsidiaries currency translation and exchange adjustments
Currency translation reclassified on disposal
Tax on the above
At 31 December
Total other reserves per balance sheet
Retained earnings4
At 1 January
Parent and subsidiaries profit for the year
Equity accounted units loss after tax for the year
Actuarial gains/(losses)5
Tax relating to components of other comprehensive income
Total comprehensive income for the year
Capital increase in non-controlling interest
Dividends paid
At 31 December
2015
$m
2014
$m
(36.2)
0.1
3.5
(10.2)
(1.3)
(44.1)
(6.8)
(0.2)
(8.5)
(25.2)
4.5
(36.2)
(10.7)
(3.2)
1.0
(12.9)
(30.9)
(6.1)
26.3
(10.7)
(0.5)
(1.8)
(2.3)
(59.3)
25.7
(26.2)
(0.5)
(47.4)
5,932.1
614.0
(5.8)
4.5
(1.2)
6,543.6
(127.2)
6,416.4
6,447.5
463.4
(3.6)
(13.2)
3.4
6,897.5
1.5
(2.7)
(964.2)
5,932.1
1 The hedging reserve records gains or losses on cash flow hedges that are recognised initially in equity, as described in Note 26(d).
2 The available-for-sale revaluation reserves record fair value gains or losses relating to available-for-sale investment, as described in Note 18.
3E
xchange differences arising on the translation of the Groups net investment in foreign controlled companies are taken to the foreign currency translation reserve. The cumulative differences
relating to an investment are transferred to the income statement when the investment is disposed of.
4 Retained earnings and movements in reserves of subsidiaries include those arising from the Groups share of joint operations.
5 Actuarial gains or losses relating to long-term employee benefits, as described in Note 28.
OVERVIEW
32 Non-controlling interests
The non-controlling interests of the Group during 2015 and 2014 are as follows:
Noncontrolling
interest
% Country
Elimination
of non- Hedging and
controlling
actuarial
interest gains/losses
$m
$m
At
Exchange 31 December
differences
2015
$m
$m
40.0
30.0
0.1
30.0
Chile
Chile
Chile
Chile
971.3
861.1
0.7
14.5
151.8
(46.5)
0.2
(11.9)
(80.0)
14.6
(2.7)
(0.5)
(0.8)
1.4
1,040.4
814.1
0.1
18.6
50.0
Bolivia
13.4
1,861.0
(0.1)
93.5
(80.0)
14.6
(13.3)
(13.3)
(2.6)
1,873.2
At
1 January
2014
Country
$m
40.0
30.0
0.1
30.0
60.0
Chile 1,030.9
Chile
819.8
Chile
37.4
Chile
(26.2)
USA
62.5
352.3
56.1
(0.3)
(3.8)
(12.3)
(392.0)
(15.0)
(5.2)
46.2
3.8
2.7
(32.0)
(56.7)
(19.9)
0.2
0.8
(1.7)
971.3
861.1
0.7
14.5
(1.1)
390.9
(412.2)
50.0
2.7
(88.7)
(20.6)
(0.2)
(0.2)
13.4
1,861.0
50.0
Bolivia
14.7
1,939.1
Share of
dividends
$m
Capital
contribution
on noncontrolling
interest
$m
Capital
increase in
noncontrolling
interest
$m
Elimination of
noncontrolling
interest
$m
Hedging and
actuarial
gains/losses
$m
At
Exchange 31 December
differences
2014
$m
$m
The proportion of the voting rights is proportional with the economic interest under the companies listed above.
Noncontrolling
interest
%
Share of
profit/
(losses) for
the financial
year
$m
GOVERNANCE
Los Pelambres
Centinela
Michilla
Antucoya
Twin Metals
Railway and
other transport
services
Total
Capital
contribution
on nonShare of
controlling
dividends
interest
$m
$m
STRATEGIC REPORT
Los Pelambres
Centinela
Michilla
Antucoya
Railway and other
transport services
Total
At
1 January
2015
$m
Share of
profit/
(losses)
for the
financial
year
$m
OTHER INFORMATION
Antofagasta plc 173
32 Non-controlling interests continued

Summarised financial position and cash flow for the years ended 2015 and 2014
Non-controlling interest (%)

Current assets
Non-current assets
Current liabilities
Accumulated non-controlling interest
Net cash flow from operating activities
Net cash flow from investing activities
Net cash flow from financing activities
Non-controlling interest (%)

Current assets
Non-current assets
Current liabilities
Accumulated non-controlling interest
Net cash flow from operating activities
Net cash flow from investing activities
Net cash flow from financing activities
Los Pelambres
2015
$m
Centinela
2015
$m
Michilla
2015
$m
Antucoya
2015
$m
40.0%
248.8
670.5
2,853.6
(429.0)
(770.1)
1,040.4
490.1
(333.4)
(139.9)
30.0%
598.8
474.7
4,195.7
(561.5)
(1,517.6)
814.1
197.9
(429.7)
199.9
0.1%
96.4
26.9
0.0
(13.5)
(32.6)
0.1
26.3
(36.8)
30.0%
138.6
166.3
1,747.0
(136.1)
(1,068.8)
18.6
(104.5)
(215.0)
287.0
Los Pelambres
2014
$m
Centinela
2014
$m
Michilla
2014
$m
Antucoya
2014
$m
40.0%
219.5
473.1
2,968.2
(475.2)
(783.7)
(971.3)
1,376.1
(408.9)
(914.9)
30.0%
760.2
457.2
4,295.1
(869.7)
(1,681.2)
(861.1)
744.5
(838.9)
(1.1)
0.1%
68.8
64.1
47.8
(47.5)
(66.4)
(0.7)
65.2
(10.5)
(20.0)
30.0%
171.1
78.4
1,458.4
(796.0)
(867.4)
(14.5)
(158.5)
(676.6)
959.1
Notes to the summarised financial position and cash flow

(i) The amounts disclosed for each subsidiary are based on the amounts included in the consolidated financial statements (ie 100% of the
results and balances of the subsidiary rather than the non-controlling interest proportionate share) before inter-company eliminations.
(ii) Summarised income statement information is shown in the segment information in Note 4.
33 Notes to the consolidated cash flow statement

a) Reconciliation of profit before tax to net cash inflow from operating activities
Profit before tax from continuing and discontinued operations

Depreciation and amortisation
Net (profit)/loss on disposals
Profit on disposal of discontinued operations
Net finance expense
(Increase)/decrease in inventories
Decrease in debtors
Increase in creditors and provisions
Cash flow from operations from continuing and discontinued operations
2015
$m
2014
$m
1,118.4
576.1
10.2
(859.0)
39.2
5.8
60.5
137.7
(230.6)
858.3
1,573.5
606.0
(24.1)
(57.9)
62.1
4.1
32.1
124.8
187.2
2,507.8
At 1 January 2015 Cash flows

$m
$m
Exchange
$m
At 31 December 2015
$m
(171.3)
225.0
(8.5)
4.8
50.0
50.0
(36.4)
(36.4)
0.8
1.4
3.0
0.1
5.3
(31.1)
807.5
924.1
1,731.6
(753.4)
(1,963.3)
(5.5)
(29.9)
(3.0)
(2,755.1)
(1,023.5)
At 1 January 2014
$m
Cash flows
$m
Other
$m
Exchange
$m
At 31 December 2014
$m

Liquid investments
Total cash and cash equivalents and liquid investments
613.7
2,071.4
2,685.1
259.2
(542.3)
(283.1)
(27.5)
(27.5)
845.4
1,529.1
2,374.5
Bank borrowings due within one year

Bank borrowings due after one year
Finance leases due within one year
Finance leases due after one year
Preference shares
Total borrowings
Net cash
(329.4)
(985.0)
(11.6)
(44.6)
(3.3)
(1,373.9)
1,311.2
29.7
(1,042.2)
12.2
(1,000.3)
(1,283.4)
23.7
(23.3)
(9.1)
6.6
(2.1)
(2.1)
0.2
0.2
(27.3)
(276.0)
(2,050.5)
(8.5)
(38.0)
(3.1)
(2,376.1)
(1.6)
c) Net debt
Cash, cash equivalents and liquid investments
Total borrowings
2014
$m
1,731.6
(2,755.1)
(1,023.5)
2,374.5
(2,376.1)
(1.6)
2015
$m
2014
$m
27.8
36.6
34 Operating lease arrangements

Minimum lease payments under operating leases recognised in income for the year
At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under non-cancellable operating
leases, which fall due as follows:
Within one year

In the second to fifth years inclusive
After five years
2015
$m
2014
$m
32.4
33.8
66.2
30.5
33.3
0.8
64.6
Operating lease payments relate mainly to rental of plant and equipment by operating subsidiaries of the Group.
Antofagasta plc 175
OTHER INFORMATION
2015
$m
(1.5)
(605.0)
(606.5)
(306.9)
(139.2)
11.5
0.3
(434.3)
(1,040.8)
GOVERNANCE
845.4
1,529.1
2,374.5
(276.0)
(2,050.5)
(8.5)
(38.0)
(3.1)
(2,376.1)
(1.6)
STRATEGIC REPORT

Liquid investments
Total cash and cash equivalents and liquid investments
Bank borrowings due within one year
Bank borrowings due after one year
Finance leases due within one year
Finance leases due after one year
Preference shares
Total borrowings
Net (debt)/cash
Other
$m
OVERVIEW
b) Analysis of changes in net debt
35 Exchange rates in US dollars

Assets and liabilities denominated in foreign currencies are translated into dollars and sterling at the period end rates of exchange.
Results denominated in foreign currencies have been translated into dollars at the average rate for each period.
Year end rates
Average rates
2015
2014
$1.4828 = 1;
$1 = Ch$710.16
$1.5284 = 1;
$1 = Ch$654.47
$1.6426 = 1;
$1 = Ch$606.75
$1.6072 = 1;
$1 = Ch$570.15
36 Related party transactions

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed
inthisnote. Transactions between the Group and its associates are disclosedbelow.
The transactions which Group companies entered into with related parties who are not members of the Group are set out below. There are not
guarantees given or received and no provisions for doubtful debts related to the amount of outstanding balances.
a) Quienco S.A.
Quienco S.A. (Quienco) is a Chilean financial and industrial conglomerate, the shares of which are traded on the Santiago Stock Exchange.
The Group and Quienco are both under the control of the Luksic family, and three Directors of the Company, Jean-Paul Luksic, Andronico
Luksic and Gonzalo Menndez, are also directors of Quienco.
The following material transactions took place between the Group and theQuienco group of companies, all of which were on normal
commercial terms:
the Group earned interest income of $0.6 million (2014 $0.5 million) during the year on deposits with Banco de Chile S.A., a subsidiary
ofQuienco. Deposit balances at the end of the year were $110.4 million (2014 $70.1 million);
the Group earned interest income of $0.7 million (2014 $1.5 million) during the year on investments with Banchile Corredores de Bolsa
S.A., a subsidiary of Quienco. Investment balances at the end of the year were $12.1 million (2014 $26.3 million);
the Group bought fuel from ENEX S.A. a subsidiary of Quienco of $32.4 million (2014 $54.3 million). The balance due to ENEX S.A.
at theend of the year was nil (2014 nil).
b) Michilla/Minera Cerro Centinela S.A.
In March 2014, the Group acquired an additional 25.7% interest in Michilla for $30.9 million, increasing the Groups interest from 74.2% to
99.9%. This included the acquisition of the 7.973% stake held by Minera Cerro Centinela S.A., an entity ultimately controlled by the Luksic
family, for $9.6 million. Prior to this transaction, Michilla paid dividends of $1.6 million to Minera Cerro Centinela S.A.
c) Compaa de Inversiones Adritico S.A.
In 2013, the Group leased office space on normal commercial terms from Compaa de Inversiones Adritico S.A., a company controlled by
the Luksic family, at a cost of less than $0.5 million (2014 $0.7 million).
d) Antofagasta Terminal Internacional S.A.
As explained in Note 17, the Group has a 30% interest in Antofagasta Terminal Internacional S.A. (ATI) which is accounted for as an
associate. During 2015, the Group has not received dividends from ATI (2014 nil).
e) Antomin Limited, Antomin 2 Limited and Antomin Investors Limited
The Group holds a 51% interest in Antomin 2 Limited (Antomin 2) and Antomin Investors Limited (Antomin Investors), which own a
number of copper exploration properties. The Group originally acquired its 51% interest in these properties for a nominal consideration from
Mineralinvest Establishment, a company controlled by the Luksic family, which continues to hold the remaining 49% of Antomin 2 and
Antomin Investors. During the year ended 31 December 2015, the Group incurred $4.2 million (year ended 31 December 2014 $17.0 million)
of exploration work at these properties.
f) Tethyan Copper Company Limited
As explained in Note 17, the Group has a 50% interest in Tethyan Copper Company Limited (Tethyan), which is a joint venture with Barrick
Gold Corporation over Tethyans mineral interests in Pakistan. During 2015, the Group contributed $4.0 million (2014 $8.5 million) to Tethyan.
The balance due from Tethyan to Group companies at the end of the year was nil (2014 nil).
As explained in Note 17, the Group has a 50.1% interest in Energa Andina, which is a joint venture with Origin Energy Geothermal Chile
Limitada for the evaluation and development of potential sources of geothermal and solar energy. The balance due from Energa Andina S.A.
to the Group at 31 December 2015 was nil (2014 less than $0.1 million). During the year ended 31 December 2015, the Group contributed
$1.3 million to Energa Andina (2014 $7.7 million).
OVERVIEW
g) Energa Andina S.A.
h) Compaia Minera Zaldvar SpA
i) Directors and other key management personnel

Information relating to Directors remuneration and interests are given in theRemuneration Report on page 96. Information relating to the
remuneration of key management personnel including the Directors is givenin Note 8.
j) Inversiones Hornitos S.A.
STRATEGIC REPORT
The Groups 50% (2014 0%) interest in Minera Zaldvar was acquired on 1 December 2015 (see Note 17), which is a joint venture with Barrick
Gold Corporation. Antofagasta is the operator of Zaldvar from 1 December 2015 onwards. The balance due from Zaldvar to Group companies
at the end of the year was less than $0.1 million.
As explained in Note 17, the Group has a 40% interest in Inversiones Hornitos S.A., which is accounted for as an associate. The Group paid
$140.5 million (year ended 31 December 2014 $175.3 million) to Inversiones Hornitos in relation to the energy supply contract at Centinela.
During 2015, the Group has received dividends from Inversiones Hornitos S.A. for $12.1 million (2014 $20.0 million).
As explained in Note 17, the Group has a 30% interest in Parque Elico El Arrayn S.A. (El Arrayn), which is accounted for as an associate.
The Group paid $42.0 million (year ended 31 December 2014 $12.0 million) to El Arrayn in relation to the energy supply contract at Los
Pelambres. During 2015, the Group has contributed nil to El Arrayn (2014 $2.6 million).
GOVERNANCE
k) Parque Elico El Arrayn S.A.
l) Alto Maipo SpA

As explained in Note 17, the Group has a 40% interest in Alto Maipo SpA (Alto Maipo), which is accounted for as an associate. During 2014,
the Group made capital contributions for $42.8 million to Alto Maipo (2014 $nil). The balance due from Alto Maipo to the Group at
31 December 2015 was $229.7 (2014 $152.4 million), representing loan financing with an interest rate of LIBOR six-month plus 4.25%.
Antofagasta plc or its subsidiaries are subject to various claims which arise in the ordinary course of business. No provision has been made
in the financial statements and none of these claims are currently expected to result in any material loss to the Group. Details of the principal
claims in existence either during, or at the end of, the period and the current status of these claims are set out below:
Los Pelambres Mauro tailings dam
Two of these claims are currently ongoing and Los Pelambres is continuing to take necessary steps to protect its position.
In the first claim, the plaintiffs have argued that the tailings dam affects their alleged water rights and the environment. This allegation is based
on assertions that the dam interferes with the flow and quality of the water in the Pupo stream, a stream that passes through the valley in
which the dam is built down to the Caimanes community. This claim was rejected by the trial Court of Los Vilos in a judgement issued in
November 2012, which was then affirmed by the Court of Appeals of La Serena in August 2013. In October 2014, the Supreme Court, by
a 32 majority decision, upheld the appeal and ordered Los Pelambres to submit back to the trial Court of Los Vilos, within one month, an
implementation plan for works that would ensure that the operation of the dam does not affect the normal flow and quality of the waters of the
Pupo stream. Los Pelambres believes that the requirements of this order have already been met as Los Pelambres has undertaken significant
works to ensure that the flow of the Pupo stream is not altered and that the operation of the tailings dam does not affect the quantity or quality
of these waters something that has been confirmed by accredited independent assessors and other public services in Chile and confirmed
by the Supreme Court in a parallel decision. Nevertheless, on 21 November 2014, Los Pelambres submitted this plan to the trial Court of
Los Vilos. On 6 March 2015, that Court found that the plan submitted by Los Pelambres was not sufficient to address the requirements of
the Supreme Court order, and as a consequence Los Pelambres must demolish part, or all, of the tailings dam wall. Los Pelambres appealed
the Courts decision and in December 2015 the Court of Appeals ordered that, before it issues its decision, a Court appointed engineer must
review the plan submitted by Los Pelambres and issue a report explaining whether or not the proposed works are enough to ensure that the
flow of the Pupo stream to the Caimanes community is not altered by the operation of the tailings dam and, if the proposed works are not
deemed to be sufficient to achieve this purpose, what additional or other works must be performed by Los Pelambres to achieve this goal.
That report is currently pending.
Antofagasta plc 177
OTHER INFORMATION
As previously announced, during 2008 Los Pelambres entered into binding settlements in respect of litigation relating to the Mauro tailings
dam. Since then, there have been a series of civil claims filed by some members of the Caimanes community (which is located near the Mauro
tailings dam) seeking to stop the operation of the dam. Many of these claims have been rejected by the relevant courts.
37 Litigation and contingent liabilities
37 Litigation and contingent liabilities continued

In the second claim, the plaintiffs are seeking demolition of the dam wall on the basis of the risk that its collapse would pose to the community.
The Civil Court in Los Vilos issued a decision in May 2014 denying the demolition request but ordering Minera Los Pelambres to undertake
some additional measures to ensure protection of the community, in the event of a major earthquake or similar natural event. These measures
would need to be reviewed and agreed with the technically competent bodies responsible for supervision of the dam. The decision of the
Court of Los Vilos was appealed by both the plaintiffs and Los Pelambres to the Court of Appeal of La Serena. In April 2015, the Court of
Appeal of La Serena upheld Los Pelambress appeal, overturning the decision of the Court of Los Vilos and rejecting completely the plaintiffs
claim. The decision of the Court of Appeal has been appealed by the plaintiffs to the Supreme Court. The Supreme Court is expected to hear
oral arguments and issue a final decision within the next few months.
Los Pelambres Cerro Amarillo Waste Dump
In 2004, Los Pelambres received all of the required authorisations from the Chilean government to deposit a waste-rock dump (Cerro Amarillo
Waste Dump) in its current location which, according to the then official Chilean maps (1996), was located within Chile. In 2007, Chile
modified the official maps in this area without making the changes public. Los Pelambres stopped using the relevant area of the Cerro Amarillo
Waste Dump in 2011.
In February 2012, a binational border commission, established to clarify the exact position of the Chile/Argentina border, determined accurately
the location of the border in the area of the Cerro Amarillo Waste Dump, which showed that part of the Cerro Amarillo Waste Dump was
located in Argentina.
In May 2014, Xstrata Pachn S.A. (Xstrata Pachn), a subsidiary of Glencore plc and the holder of the mining properties on the Argentinian
side of the border, filed a claim against Los Pelambres before the Federal Court of San Juan, Argentina, alleging that Los Pelambres had
unlawfully deposited waste-rock on its property.
Xstrata Pachn has also filed a criminal complaint before a different Federal Court of San Juan alleging that Los Pelambres had violated several
Argentinian laws relating to the misappropriation of land, unlawful appropriation of water bodies and that peoples health was in jeopardy from
the alleged contamination that the Cerro Amarillo Waste Dump might generate.
In both cases, Los Pelambres submitted preliminary objections to the Argentinian courts. These objections are still pending in relation to the
civil claim. Each party may appeal any decision on these preliminary objections to higher courts.
In the criminal proceeding the first instance Court dismissed the preliminary objections made by Los Pelambres but this decision has
been appealed.
The Cerro Amarillo Waste Dump is a pile of inert waste-rock and any potential future environmental impact could be easily prevented with
theimplementation of an environmental closure plan, which is the accepted and recommended practice.
Los Pelambres has offered to implement a closure plan in line with the requirements of the Provincial Authorities of San Juan, but Xstrata
Pachn has rejected this proposal outright, even though this solution would address all of the alleged environmental concerns.
Los Pelambres will exercise all available legal avenues to defend its position and will continue to seek to reach an understanding with the
relevant authorities in Argentina to allow the environmental closure of the Cerro Amarillo Waste Dump.
38 Ultimate Parent Company

The immediate parent of the Group is Metalinvest Establishment, which is controlled by E. Abaroa Foundation, in which members of the
Luksic family are interested.
Both Metalinvest Establishment and the E. Abaroa Foundation are domiciled in Liechtenstein. Information relating to the interest
ofMetalinvestEstablishment and the E. Abaroa Foundation aregiven in theDirectors report.
OVERVIEW
39 Antofagasta plc balance sheet of the Parent Company and related notes
At 31 December 2015
Fixed assets
Investment in subsidiaries
Debtors loans to group undertakings
Tangible fixed assets
535.6
500.0
0.7
1,036.3
600.5
600.5
39D
49.8
1.0
184.1
3.4
238.3
1,274.6
44.7
66.5
2.3
113.5
714.0
(6.8)
(297.7)
(66.2)
970.1
(296.6)
(183.1)
417.4
(3.0)
967.1
(3.1)
414.3
89.8
89.8
199.2
678.1
967.1
199.2
Current assets
Debtors amounts falling due within one year
amounts owed by subsidiaries

other debtors
Current asset investments (term deposits)
Cash at bank and in hand
Total assets
Creditors amounts falling due within one year
Other creditors
Amounts owed to subsidiaries
Net current liabilities
Total assets less current liabilities
Creditors amounts falling due after more than one year
Preference shares
Total assets less total liabilities
Capital and reserves
Called up shares capital
Ordinary shares equity
39E
Reserves
Share premium account

Profit and loss account
Shareholders funds (including non-equity interests)
125.3
414.3
39D
GOVERNANCE
2014
$m
STRATEGIC REPORT
2015
$m
Notes
Approved by the Board and signed on its behalf on 14 March 2016.

OTHER INFORMATION
Jean-Paul Luksic
Chairman

William Hayes
Senior Independent Director and
Chairman Audit and Risk Committee
Antofagasta plc 179
39 Antofagasta plc Balance sheet of the Parent Company and related notes continued
Statement of changes in equity of the Parent Company
Called up
ordinary
share capital
$m
Share
premium
$m
Retained
earnings
$m
Total
$m
89.8
89.8
89.8
199.2
199.2
199.2
141.3
948.2
(964.2)
125.3
680.0
(127.2)
678.1
430.3
948.2
(964.2)
414.3
680.0
(127.2)
967.1
At 1 January 2014 (equity)

Profit for the financial year
Dividends paid
At 31 December 2014 and 1 January 2015
Profit for the financial year
Dividends paid
31 December 2015 (equity)
The ordinary shares rank after the preference shares in entitlement to dividend and on awinding-up. Each ordinary share carries one vote at
anygeneral meeting.
Antofagasta plc is a company limited by shares, incorporated and domiciled in the United Kingdom at Cleveland House 33 King Street, London.
39A Basis of preparation of the balance sheet andrelated notes of the Parent Company
The Antofagasta plc Parent Company balance sheet and related notes have been prepared in accordance with FRS 101, which applies
the recognition and measurement bases of IFRS with reduced disclosure requirements. The financial information has been prepared on a
historical cost basis. The financial statements have been prepared on a going concern basis. Thefunctional currency of the Company and
thepresentational currency adopted is US dollars.
The following exemptions from the requirements of IFRS have been applied in the preparation of these financial statements, in accordance
with FRS 101:
Paragraphs 45(b) and 46 to 52 of IFRS 2, Share-based payment (details of the number and weighted-average exercise prices of share
options, and how the fair value of goods or services received was determined)
IFRS 7 Financial Instruments: Disclosures
Paragraphs 91 to 99 of IFRS 13 Fair value measurement (disclosure of valuation techniques and inputs used for fair value measurement
ofassets and liabilities)
Paragraph 38 of IAS 1 Presentation of financial statements comparative information requirements in respect of:
(i) paragraph 79(a)(iv) of IAS 1;
(ii) paragraph 73(e) of IAS 16 Property, plant and equipment; and
(iii) paragraph 118(e) of IAS 38 Intangible assets (reconciliations between the carrying amount at the beginning and end of the period)
The following paragraphs of IAS 1, Presentation of financial statements:
10(d), (statement of cash flows);
10(f) (a statement of financial position as at the beginning of the preceding period when an entity applies an accounting policy
retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its
financial statements);
16 (statement of compliance with all IFRS);
38A (requirement for minimum of two primary statements, including cash flow statements);
38B-D (additional comparative information);
40A-D (requirements for a third statement of financial position;
111 (cash flow statement information); and
134136 (capital management disclosures).
IAS 7 Statement of cash flows
Paragraph 30 and 31 of IAS 8 Accounting policies, changes in accounting estimates and errors (requirement for the disclosure
ofinformation when an entity has not applied a new IFRS that has been issued but is not yet effective)
Paragraph 17 of IAS 24 Related party disclosures (key management compensation)
The requirements in IAS 24 Related party disclosures to disclose related party transactions entered into between two or more members
ofa group.
A summary of the principal accounting policies is set out below.
OVERVIEW
As permitted by section 408 of the Companies Act 2006, the profit and loss account of the Parent Company is not presented as part of these
financial statements. The profit after tax for the year of the Parent Company amounted to $680.0 million (2014 $948.2 million).
39B Principal accounting policies oftheParentCompany
b) Revenue recognition
Dividends proposed by subsidiaries are recognised as income by the Company when they represent a present obligation of the subsidiaries,
iein the period in which they are formally approved for payment.
Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial asset to that assets net carrying amount.
d) Investments in subsidiaries
Investments in subsidiaries represent equity holdings in subsidiaries and long-term amounts owed by subsidiaries. Such investments are
valued atcost less any impairment provisions. Investments are reviewed for impairment if events or changes in circumstances indicate that the
carrying amount may not be recoverable. The recoverable amount of the investment is the higher of fair value less cost to dispose and value
inuse. As explained in Note 39D, amounts owed by subsidiaries due in currencies other than the functional currency are translated at year end
rates of exchange with any exchange differences taken to the profit and loss account.
e) Current asset investments and cash at bank and in hand

Current asset investments comprise highly liquid investments that are readily convertible into known amounts of cash and which are subject
toinsignificant risk of changes in value, typically maturing within 12 months.
Cash at bank and in hand comprise cash in hand and deposits repayable on demand.
f) Borrowings preference shares
The sterling-denominated preference shares issued by the Company carry afixed rate of return without the right to participate in any surplus.
They are accordingly classified as borrowings and translated into US dollars at year end rates of exchange. Preference share dividends are
included within finance costs.
g) Equity instruments ordinary share capital and sharepremium
Equity instruments issued are recorded at the proceeds received, net of direct issue costs. Equity instruments of the Company comprise
itssterling-denominated issued ordinary share capital and related share premium.
39C Employee benefit expense

a) Average number of employees
The average number of employees was five (2014 nil).
b) Aggregate remuneration
The aggregate remuneration of the employees mentioned above was as follows:
2015
$m
2014
$m
0.6
0.1
0.7
The above employee figures exclude Directors who receive Directors fees from Antofagasta plc. Details of fees payable to Directors are set
out in the Remuneration Report.
Antofagasta plc 181
OTHER INFORMATION
As explained above, the presentational and the functional currency of the Company is US dollars, and ordinary share capital and share premium
are translated into US dollars at historical rates of exchange based on dates ofissue.
Wages and salaries

Social security costs
GOVERNANCE
c) Dividends payable
Dividends proposed are recognised when they represent a present obligation, ie in the period in which they are formally approved for payment.
Accordingly, an interim dividend is recognised when paid and a final dividend is recognised when approved by shareholders.
STRATEGIC REPORT
a) Currency translation
The Companys functional currency is the US dollar. Transactions in currencies other than the functional currency aretranslated at the
exchange rate ruling at the date of the transaction. Monetary assets and liabilities, including amounts due from or to subsidiaries, denominated
in currencies other than the functional currency are retranslated at year end exchange rates. Gains and losses on retranslation are included
innetprofit or loss for the year.
39 Antofagasta plc balance sheet of the Parent Company and related notes continued
39D Subsidiaries
a) Investment in subsidiaries
2015
$m
2014
$m
57.6
478.0
535.6
57.6
542.9
600.6
Shares
$m
Loans
$m
Total
$m
57.6
57.6
542.9
(64.9)
478.0
600.5
(64.9)
535.6
Shares in subsidiaries at cost

Amounts owed by subsidiaries due after more than one year
1 January 2015
Loans repaid
31 December 2015
The above amount of $478.0 million (2014 $542.9 million) in respect of amounts owed by subsidiaries due after more than one year relates
tolong-term funding balances which form an integral part of the Companys long-term investment in those subsidiary companies.
A one-off repayment of capital following the sale of Aguas de Antofagasta S.A. was made during 2015 and therefore it is still appropriate to
consider the rest of the loans as part of the investment in subsidiary.
b) Trade and other receivables amounts owed by subsidiaries due after one year
At 31 December 2015, an amount of $500.0 million was owed to the Company by an indirect subsidiary, pursuant to a ten-year
loan agreement.
c) Trade and other receivables amounts owed by subsidiaries due within one year
At 31 December 2015, amounts owed by subsidiaries due within one year were $49.8 million (2014 $44.7 million).
39E Borrowings preference shares
The authorised, issued and fully paid preference share capital of the Company comprised 2,000,000 5% cumulative preference shares of
1each at both 31 December 2015 and 31 December 2014. As explained inNote 39B(f), the preference shares are measured in the balance
sheet in US dollars at period-end rates of exchange.
The preference shares are non-redeemable and are entitled to a fixed 5% cumulative dividend, payable in equal instalments in June and
December of each year. On a winding-up, the preference shares are entitled to repayment and any arrears of dividend in priority to ordinary
shareholders, but are not entitled to participate further in any surplus. Each preference share carries 100 votes (see Note 24.(a).(xviii)) at any
general meeting.
Other information
184
Ore reserves and mineral resources estimates
186
Mining production and sales, cash cost reconciliation,

transport and water statistics
194
197
200
ibc
OVERVIEW
Five-year summary
STRATEGIC REPORT
GOVERNANCE
OTHER INFORMATION
Antofagasta plc 183
Five-year summary

Intangible asset
Investment property
Inventories1
Investment in associate2
Deferred tax assets
Non-current assets2
Current assets2
Current liabilities2
Non current liabilities2
Share capital
Share premium
Reserves (retained earnings and hedging, translation and
fair value reserves)
Equity attributable to equity holders of the Company
Consolidated income statement5

Group revenue
Total profit from operations and associates
Profit before tax2,3
Income tax expense2
Profit for the financial year from continuing operations
Profit for the financial year from discontinued operations5
Profit for the year
Net earnings (profit attributable to equity holders of the Company)
EBITDA4,5
Earnings per share

Basic and diluted earnings per share2,5
2015
US$m
2014
US$m
2013
US$m
2012
US$m
2011
US$m
150.1
8,601.1
2.0
263.9
1,146.6
292.9
2.7
124.6
10,583.9
2,953.2
(1,438.6)
(3,579.2)
8,519.3
89.8
199.2
118.6
8,227.1
2.6
247.8
198.1
239.5
15.6
104.6
9,153.9
3,661.2
(1,163.4)
(3,617.0)
8,034.7
89.8
199.2
133.0
7,424.8
3.3
252.7
175.2
180.8
16.6
76.9
8,263.3
4,126.3
(1,130.6)
(2,595.4)
8,663.6
89.8
199.2
157.6
6,513.2
162.5
3.5
106.5
108.3
8.0
44.5
103.8
7,207.9
5,655.9
(1,295.1)
(2,763.9)
8,804.8
89.8
199.2
155.3
6,443.0
104.7
3.1
84.8
67.7
47.6
36.5
83.2
7,025.9
4,679.3
(985.3)
(2,912.5)
7,807.4
89.8
199.2
6,357.1
6,646.1
1,873.2
8,519.3
5,884.7
6,173.7
1,861.0
8,034.7
6,435.5
6,724.5
1,939.1
8,663.6
6,821.6
7,110.6
1,694.2
8,804.8
5,907.2
6,196.2
1,611.2
7,807.4
2015
US$m
2014
US$m
2013
US$m
2012
US$m
2011
US$m
3,394.6
304.4
259.4
(160.4)
99.0
602.7
701.7
(93.5)
608.2
890.7
5,145.6
1,583.6
1,515.6
(702.3)
813.3
37.4
850.7
(390.9)
459.8
2,141.4
5,971.6
2,157.7
2,083.5
(843.7)
1,239.8
1,239.8
(580.2)
659.6
2,702.2
6,740.1
2,852.7
2,761.8
(1,022.2)
1,739.6
1,739.6
(702.4)
1,037.2
3,864.4
6,076.0
3,097.4
3,076.2
(946.2)
2,130.0
2,130.0
(893.4)
1,236.6
3,660.5
2015
cents
2014
cents
2013
cents
2012
cents
2011
cents
61.7
46.6
66.9
105.2
125.4
2015
cents
2014
cents
2013
cents
2012
cents
2011
cents
3.1
3.1
12.9
21.5
21.5
97.8
95.0
95.0
90.0
21.0
77.5
98.5
44.5
20.0
24.0
60.0
120.0
Dividends to Ordinary Shareholders of the Company5
Dividends per share proposed in relation to the year

Ordinary dividends (interim and final)
Special dividends
Dividends per share paid in the year and deducted from equity
2011
US$m
858.3
(38.6)
(427.1)
392.6
2,507.8
(45.4)
(641.5)
1,820.9
2,659.2
(57.2)
(896.5)
1,705.5
3,826.0
(88.1)
(901.2)
2,836.7
3,552.5
(69.3)
(1,018.1)
2,465.1
(29.9)
12.1
414.8
20.0
372.7
278.9
1.1
(496.0)
1.2
(1,165.9)
(1,046.9)
11.0
(638.9)
(1,613.7)
16.5
(1,204.5)
(1,334.2)
14.0
(1,041.3)
(868.1)
24.8
(1,338.2)
(670.5)
21.7
(1,813.5)
(127.2)
(80.0)
452.0
244.8
(1.5)
(964.2)
(412.4)
1,019.4
(357.2)
259.2
(975.0)
(452.3)
(418.2)
(1,845.5)
(1,181.3)
(438.7)
(702.7)
105.6
(1,035.8)
462.7
(1,183.0)
(741.2)
(114.5)
(2,038.7)
(1,387.1)
2015
US$m
2014
US$m
2013
US$m
2012
US$m
2011
US$m
1,731.6
(758.9)
(1,996.2)
(2,755.1)
(1,023.5)
2,374.5
(284.5)
(2,091.6)
(2,376.1)
(1.6)
2,685.1
(341.0)
(1,032.9)
(1,373.9)
1,311.2
4,291.9
(447.0)
(1,442.2)
(1,889.2)
2,402.7
3,280.0
(301.9)
(1,838.4)
(2,140.3)
1,139.7
1N
on-current inventories refer to ore stockpiles that are expected to be processed more than 12 months after the statement of financial position date. The 2015, 2014, 2013 and 2012 balances have
been prepared on this basis, and the 2011 balance has been restated to reflect this classification.
2T
he 2012 figures have been restated as a result of the adoption of IFRS 11 Joint Arrangements and the application of the amendments to IAS 19 Employee Benefits in 2013. The 2011 balance have
not been restated.
2012
US$m
GOVERNANCE
Net cash at the year end2
2013
US$m
STRATEGIC REPORT
Consolidated net cash

Cash, cash equivalents and liquid investments2
Short-term borrowings4
Medium and long-term borrowings4
2014
US$m
OVERVIEW

Cash flow from operations2,5
Interest paid
Income tax paid2
Net cash from operating activities2
Investing activities
Acquisition and disposal of subsidiaries, joint venture and associates
Dividends from associates
Available-for-sale investments, investing activities and recovery of VAT2
Purchases and disposals of intangible assets, property,
plant and equipment
Interest received
Net cash used in investing activities2
Financing activities
Dividends paid to preference holders and non-controlling interests
New borrowings less repayment of borrowings and finance leases
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents2
2015
US$m
3 In 2012 the Consolidation income statement included $500.0 million as a provision against the carrying value of property, plant and equipment relating to the Antucoya project. Excluding this
exceptional item profit before tax was $3,254.2 million.
5 The 2014 figures have been restated as results of IFRS 5 Non-current Assets Held for sale and Discontinued Operations related to ADASA and FCA sale during 2015.
Antofagasta plc 185
OTHER INFORMATION
4E
BITDA refers to Earnings Before Interest, Tax, Depreciation and Amortization. EBITDA is calculated by adding back depreciation, amortization, profit or loss on disposals and impairment charges
Ore reserves and

mineral resources estimates
At 31 December 2015
Introduction
The ore reserves and mineral resources estimates presented in
this report comply with the requirements of the Australasian Code
for Reporting of Exploration Results, Mineral Resources andOre
Reserves 2012 edition (the JORC Code) which has been used by the
Group as the minimum standard for the preparation and disclosure
ofthe information contained herein. The definitions andcategories
ofOre Reserves and Mineral Resources are set out below.
The information on ore reserves and mineral resources was prepared
by or under the supervision ofCompetent Persons as defined in the
JORC Code. The Competent Persons have sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and totheactivity which they are undertaking.
The Competent Persons consent to the inclusion in thisreport of
the matters based on their information in the form and context in
which itappears. The Competent Person for Exploration Results
and Mineral Resources is Aquiles Gonzalez (CP, Chile), Manager
of Mineral Resource Evaluation for Antofagasta Minerals S.A.
The Competent Person for Ore Reserves is Murray Canfield (P.Eng.
Ontario), Technical Manager of Mining for Antofagasta Minerals S.A.
The Groups operations and projects are subject to a comprehensive
programme of audits aimed atproviding assurance in respect
of ore reserves and mineral resources estimates. The audits
areconducted by suitably qualified Competent Persons from
within a particular division, another division of the Company or from
independent consultants.
The ore reserves and mineral resources estimates represent full
reserves and resources, with the Groups attributable share for
each mine shown in the Attributable tonnage column. The Groups
economic interest in each mine is disclosed in the notes following the
estimates on pages 192and193. The totals in the table may include
some small apparent differences as the specificindividual figures
have not been rounded.
Definitions and categories of ore reserves

andmineral resources
A Mineral Resource is a concentration or occurrence of material
of intrinsic economic interest inoron the Earths crust in such
form, quality and quantity that there are reasonable prospects
foreventual economic extraction. The location, quantity, grade,
geological characteristics and continuity of a Mineral Resource are
known, estimated or interpreted from specific geological evidence
and knowledge. Mineral Resources are sub-divided, in order of
increasing geological confidence, into Inferred, Indicated and
Measured categories.
An Inferred Mineral Resource is that part of a Mineral Resource
for which tonnage, grade and mineral content can be estimated
witha low level of confidence. It is inferred from geological evidence
and assumed but not verified geological and/or grade continuity. It is
based on information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes
which may be limited or of uncertain quality and reliability.
An Indicated Mineral Resource is that part of a Mineral Resource

for which tonnage, densities, shape, physical characteristics,
grade and mineral content can be estimated with a reasonable
level of confidence. It is based on exploration, sampling and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes.
The locations are too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced closely enough
forcontinuity to be assumed.
A Measured Mineral Resource is that part of a Mineral Resource
for which tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a high level ofconfidence.
It is based on detailed and reliable exploration, sampling and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes.
The locations are spaced closely enough to confirm geological and
grade continuity.
An Ore Reserve is the economically mineable part of a Measured
and/or Indicated Mineral Resource. It includes diluting materials and
allowances for losses, which may occur when the material is mined.
Appropriate assessments and studies have been carried out, and
include consideration of and modification by realistically assumed
mining, metallurgical, economic, marketing, legal, environmental,
social and governmental factors. These assessments demonstrate
at the time of reporting that extraction could reasonably be justified.
Ore Reserves are sub-divided in order of increasing confidence into
Probable Ore Reserves and Proved Ore Reserves.
A Probable Ore Reserve is the economically mineable part of an
Indicated, and in some circumstances, a Measured Mineral Resource.
It includes diluting materials and allowances for losses which may
occur when the material is mined. Appropriate assessments and
studies have been carried out, and include consideration of and
modification by realistically assumed mining, metallurgical, economic,
marketing, legal, environmental, social and governmental factors.
Theseassessments demonstrate at the time of reporting that
extraction could reasonablybejustified.
A Proved Ore Reserve is the economically mineable part of
aMeasured Mineral Resource. Itincludes diluting materials and
allowances for losses which may occur when the material is
mined.Appropriate assessments and studies have been carried out,
and include consideration ofand modification by realistically assumed
mining, metallurgical, economic, marketing, legal, environmental,
social and governmental factors. These assessments demonstrate
atthe time ofreporting that extraction could reasonably be justified.
At 31 December 2015
Tonnage
(millions of tonnes)
Group subsidiaries
2015
2014
2015
2014
2015
0.022
0.015
0.019
0.022
0.015
0.019
0.05
0.04
0.05
577.0
616.2
1,263.4 1,266.3
1,840.4 1,882.5
0.50
0.41
0.44
0.50
0.42
0.44
0.012
0.012
0.012
0.011
0.012
0.012
0.20
0.13
0.15
44.3
39.1
83.3
56.2
43.2
99.4
0.69
0.54
0.62
0.73
0.57
0.66
1.3
103.8
105.2
188.5
7.9
100.8
108.7
208.1
0.31
0.29
0.29
0.44
0.31
0.30
0.30
0.47
45.6
142.9
188.5
64.1
144.0
208.1
0.68
0.36
0.44
0.67
0.38
0.47
622.6
680.3
1,406.3 1,410.3
2,028.9 2,090.6
0.51
0.41
0.44
0.52
0.41
0.45
374.0
312.6
686.6
384.1
297.6
681.6
0.36
0.31
0.34
0.36
0.31
0.34
109.4
6.2
115.6
0.55
0.42
0.54
4,139.8
2.7
2.7
4,142.8
0.48
1.20
1.20
0.48
2015
374.1
81.2
455.3
4,595.1
2014
4,142.8
Copper
(%)
2015
0.55
0.53
0.55
0.49
2014
0.48
Molybdenum
(%)
2015
2014
2015
0.05
0.04
0.04
0.20
0.13
0.16
Gold
(g/tonne)
2015
2014
2014
422.6
362.6
785.2
436.7
384.0
820.7
403.9
884.4
1,288.3
431.3
886.4
1,317.7
31.0
27.3
58.3
39.3
30.3
69.6
0.9
5.5
72.7
70.6
73.6
76.1
132.0
145.7
31.9
44.9
100.0
100.8
132.0
145.7
435.8
476.2
984.4
987.2
1,420.2 1,463.4
261.8
268.8
218.8
208.3
480.6
477.2
109.4
6.2
115.6
2.7
2.7
2,801.7 2,764.0
Attributable
tonnage
2015
2014
187.1
40.6
227.7
3,029.3 2,764.0
Antofagasta plc 187
OTHER INFORMATION
0.61
0.57
0.59
2014
0.61
0.60
0.61
Attributable
tonnage
GOVERNANCE
Zaldvar (see Note (m))

Proved
Probable
Total
Group total
2015
Gold
(g/tonne)
727.9
640.0
1,367.8
704.4
604.3
1,308.7
Tonnage
Group joint ventures
2014
Molybdenum
(%)
STRATEGIC REPORT
Ore reserves
Los Pelambres (see Note (a))
Proved
Probable
Total
Centinela (see Note (b))
Proved
Probable
Sub-total
El Tesoro
Tesoro Central, Tesoro North-East, Mirador
Proved
Probable
Sub-total
El Tesoro ROM (Esperanza Oxides)
Proved
Probable
Sub-total
Total
Centinela Cathodes
Proved
Probable
Sub-total
Centinela Total
Proved
Probable
Total
Antucoya (see Note (c))
Proved
Probable
Total
Encuentro (see Note (d))
Proved
Probable
Total
Michilla (see Note (e))
Proved
Probable
Total
Group total
Copper
(%)
OVERVIEW
Ore reserves estimates
Ore reserves and

At 31 December 2015
Mineral resources estimates (including ore reserves)

Tonnage
2015
Mineral Resources
(including ore reserves)
Los Pelambres (see Note (a))
Sulphides
Measured
Indicated
Measured + Indicated
Inferred
Total
Centinela (see Note (b))
Measured
Indicated
Inferred
Sub-total
Centinela Cathodes
Measured
Indicated
Inferred
Sub-total
Centinela Total
Measured
Indicated
Inferred
Total
Antucoya (see Note (c))
Oxides
Measured
Indicated
Inferred
Total
Encuentro (see Note (d))
Oxides
Measured
Indicated
Inferred
Sub-total
Sulphides
Measured
Indicated
Inferred
Sub-total
Total
2014
Copper
(%)
2015
2014
Molybdenum
(%)
2015
2014
Gold
(g/tonne)
2015
1,151.2 1,064.8
2,262.8 2,174.9
3,414.0 3,239.7
2,690.1 2,984.4
6,104.1 6,224.1
0.59
0.53
0.55
0.46
0.51
0.60
0.53
0.55
0.47
0.51
0.022
0.015
0.018
0.015
0.016
0.023
0.015
0.018
0.015
0.017
0.05
0.05
0.05
0.06
0.06
599.8
1,650.2
2,249.9
965.7
3,215.7
643.4
1,660.3
2,303.7
1,028.5
3,332.2
0.49
0.39
0.41
0.32
0.38
0.48
0.38
0.41
0.31
0.38
0.012
0.012
0.012
0.011
0.012
0.011
0.012
0.012
0.011
0.011
0.19
0.12
0.14
0.09
0.13
87.9
230.0
317.9
19.8
337.7
102.4
233.7
336.1
22.9
358.9
0.59
0.34
0.41
0.35
0.41
0.59
0.35
0.42
0.27
0.41
687.6
745.8
1,880.2 1,894.0
2,567.8 2,639.7
985.6 1,051.3
3,553.4 3,691.1
0.50
0.38
0.41
0.32
0.39
0.50
0.38
0.41
0.31
0.38
437.3
446.7
463.0
442.4
900.3
889.0
354.7
315.4
1,255.1 1,204.4
0.34
0.30
0.32
0.27
0.31
0.34
0.30
0.32
0.28
0.31
134.5
43.8
178.2
1.2
179.4
142.4
27.8
170.2
8.6
178.8
0.52
0.31
0.47
0.31
0.46
0.47
0.31
0.44
0.32
0.44
407.9
498.2
906.1
126.9
1,032.9
1,212.4
424.0
544.0
967.9
172.7
1,140.6
1,319.4
0.53
0.35
0.43
0.31
0.42
0.42
0.53
0.35
0.43
0.29
0.41
0.41
0.015
0.014
0.015
0.012
0.014
0.21
0.17
0.19
0.13
0.18
2014
0.05
0.05
0.05
0.06
0.06
0.19
0.12
0.14
0.09
0.12
Attributable
tonnage
2015
2014
690.7
638.9
1,357.7 1,305.0
2,048.4 1,943.8
1,614.1 1,790.7
3,662.5 3,734.5
419.8
450.4
1,155.1 1,162.2
1,575.0 1,612.6
676.0
719.9
2,251.0 2,332.5
61.5
71.7
161.0
163.6
222.5
235.3
13.9
16.0
236.4
251.3
481.3
522.1
1,316.1 1,325.8
1,797.5 1,847.8
689.9
735.9
2,487.4 2,583.8
306.1
312.7
324.1
309.6
630.2
622.3
248.3
220.8
878.6
843.1
134.5
43.8
178.2
1.2
179.4
142.4
27.8
170.2
8.6
178.8
407.9
498.2
906.1
126.9
1,032.9
1,212.4
424.0
544.0
967.9
172.7
1,140.6
1,319.4
2015
2014
2015
2014
Molybdenum
(%)
2015
2014
Gold
(g/tonne)
2015
86.8
93.1
86.8
93.1
38.7
29.8
125.5
122.8
706.1
690.6
706.1
690.6
712.2
521.8
1,418.2 1,212.4
1,543.7 1,335.2
0.43
0.43
0.35
0.40
0.37
0.37
0.30
0.34
0.34
0.42
0.42
0.33
0.40
0.37
0.37
0.30
0.34
0.35
0.007
0.007
0.007
0.007
0.06
0.06
0.05
0.05
11.0
11.0
281.8
281.8
292.8
17.5
17.5
275.8
275.8
293.3
0.30
0.30
0.41
0.41
0.41
0.30
0.30
0.43
0.43
0.42
0.05
0.05
0.2
8.0
8.2
13.4
21.6
1.1
17.7
18.8
10.2
29.0
50.6
0.7
10.2
10.9
22.0
32.9
1.5
35.3
36.8
30.7
67.5
100.4
0.47
0.47
0.47
0.28
0.35
0.41
0.36
0.37
0.29
0.34
0.34
0.46
0.44
0.44
0.27
0.33
0.38
0.34
0.34
0.27
0.31
0.31
0.15
0.14
0.14
0.09
0.12
2014
22.0
23.2
45.2
15.1
60.3
23.2
23.6
46.8
15.4
62.2
86.8
93.1
86.8
93.1
38.7
29.8
125.5
122.8
706.1
690.6
706.1
690.6
712.2
521.8
1,418.2 1,212.4
1,543.7 1,335.2
5.6
5.6
143.7
143.7
149.3
8.9
8.9
140.7
140.7
149.6
0.2
8.0
8.2
13.4
21.6
1.1
17.7
18.8
10.2
29.0
50.6
0.7
10.2
10.9
22.0
32.9
1.5
35.3
36.8
30.7
67.5
100.4
Antofagasta plc 189
OTHER INFORMATION
1.70
1.50
1.60
1.69
1.62
2015
1.72
1.51
1.61
1.72
1.64
GOVERNANCE
23.2
23.6
46.8
15.4
62.2
22.0
23.2
45.2
15.1
60.3
2014
Attributable
tonnage
STRATEGIC REPORT
Michilla (see Note (e))

Oxides
Measured
Indicated
Inferred
Total
Polo Sur (see Note (f))
Oxides
Measured
Indicated
Inferred
Sub-total
Sulphides
Measured
Indicated
Inferred
Sub-total
Total
Penacho Blanco (see Note (g))
Oxides
Measured
Indicated
Inferred
Sub-total
Sulphides
Measured
Indicated
Inferred
Sub-total
Total
Mirador (see Note (h))
Oxides
Measured
Indicated
Inferred
Sub-total
Sulphides
Measured
Indicated
Inferred
Sub-total
Total
Copper
(%)
OVERVIEW
Tonnage
Ore reserves and

At 31 December 2015
Mineral resources estimates (including ore reserves)

Tonnage
2015
Paleocanal (see Note (i))

Oxides
Measured
Indicated
Inferred
Sub-total
Total
Llano (see Note (j))
Oxides
Measured
Indicated
Inferred
Sub-total
Total
Los Volcanes (see Note (k))
Oxides
Measured
Indicated
Inferred
Sub-total
Sulphides
Measured
Indicated
Inferred
Sub-total
Total
2014
Copper
(%)
2015
2014
Molybdenum
(%)
2015
2014
Gold
(g/tonne)
2015
2014
10.3
3.4
13.7
0.5
14.2
14.2
0.52
0.41
0.49
0.33
0.49
0.49
26.9
3.8
30.8
0.6
31.4
31.4
0.53
0.43
0.52
0.44
0.51
0.51
30.4
40.8
30.4
40.8
1,873.4 1,240.2
1,873.4 1,240.2
1,903.8 1,281.0
0.31
0.31
0.50
0.50
0.50
0.39
0.39
0.47
0.47
0.47
0.011
0.011
Attributable
tonnage
2015
2014
9.1
3.0
12.2
0.5
12.6
12.6
19.1
2.7
21.9
0.4
22.3
22.3
15.5
15.5
955.4
955.4
970.9
20.8
20.8
632.5
632.5
653.3
2015
0.63
0.58
0.59
0.49
0.56
0.52
0.52
0.46
0.48
0.43
0.43
0.48
0.48
0.43
0.47
0.52
0.48
0.43
0.45
Group joint ventures
Zaldvar (see Note (m))

Measured
Indicated
Inferred
Group joint ventures total
2015
465.1
111.1
576.3
6.0
582.3
2014
Inferred
Total
2015
0.53
0.50
0.52
0.61
0.53
2014
2014
2015
2014
0.48
0.43
0.46
0.47
0.42
0.45
2014
0.20
0.19
0.19
0.16
0.18
0.16
0.16
0.15
0.15
0.16
0.16
0.17
0.17
0.15
0.17
0.17
Nickel
(%)
2015
Copper
(%)
10,660.9 9,993.2
8,314.9 7,889.6
18,975.7 17,882.9
2015
0.20
0.19
0.19
0.16
0.18
0.16
0.16
0.15
0.15
0.16
0.16
0.17
0.17
0.15
0.17
0.17
Copper
(%)
Tonnage
Total Group
0.63
0.58
0.59
0.49
0.56
0.52
0.52
0.46
0.48
0.43
0.43
0.48
0.48
0.43
0.47
0.52
0.47
0.42
0.45
2015
2014
Nickel
(%)
2015
2015
2014
0.57
0.59
0.58
0.52
0.56
0.87
0.87
0.64
0.70
0.31
0.31
0.26
0.30
0.46
215.3
86.1
712.5
285.0
927.7
371.1
433.6
173.4
1,361.3
544.5
63.3
25.3
63.3
25.3
151.9
60.8
215.2
86.1
304.8
121.9
304.8
121.9
65.2
26.1
65.2
26.1
20.5
8.2
85.7
34.3
1,967.0
786.8
7,515.8 6,852.7
5,501.8 4,715.6
13,017.6 11,568.3
TPM
(g/tonne Au+Pt+Pd)
Attributable
tonnage
0.57
0.59
0.58
0.52
0.56
0.87
0.87
0.64
0.70
0.31
0.31
0.26
0.30
0.46
2015
2014
2015
2014
2015
2014
232.6
55.6
288.1
3.0
291.1
TPM
(g/tonne Au+Pt+Pd)
2014
2015
2014
Attributable
tonnage
2015
2014
7,803.9 6,852.7
5,504.8 4,715.6
13,308.7 11,568.3
Antofagasta plc 191
OTHER INFORMATION
Tonnage
2014
Attributable
tonnage
279.5
745.5
1,025.0
481.4
1,506.4
90.4
90.4
217.0
307.4
435.5
435.5
93.1
93.1
29.3
122.4
2,371.7
9,993.2
7,889.6
17,882.9
2015
TPM
(g/tonne Au+Pt+Pd)
GOVERNANCE
279.5
745.5
1,025.0
481.4
1,506.4
90.4
90.4
217.0
307.4
435.5
435.5
93.1
93.1
29.3
122.4
2,371.7
10,084.6
8,308.9
18,393.5
2014
Nickel
(%)
STRATEGIC REPORT
Twin Metals (see Note (l))

Maturi
Measured
Indicated
Inferred
Sub-total
Birch Lake
Measured
Indicated
Inferred
Sub-total
Spruce Road
Measured
Indicated
Inferred
Sub-total
Maturi Southwest
Measured
Indicated
Inferred
Sub-total
Total
Inferred
Group subsidiaries total
Copper
(%)
OVERVIEW
Tonnage
Ore reserves and

At 31 December 2015
Notes to ore reserves and mineral

resourcesestimates
The ore reserves mentioned in this report were determined
considering specific cut-off grades for each mine and using a
longterm copper price of $3.10/lb (unchanged from 2014), $10.00/lb
molybdenum ($11.00/lb in 2014) and $1,300/oz gold (unchanged from
2014), unless otherwise noted. These same values have been used
for copper equivalent (CuEq) estimates, where appropriate.
In order to ensure that the stated resources represent mineralisation
that has reasonable prospects for eventual economic extraction
(JORC Code) the resources are enclosed within pit shells that were
optimised based on measured, indicated and inferred resources
and considering a copper price of $3.60/lb (unchanged from 2014).
Mineralisation estimated outside these pit shells is not included
in the resource figures unless they can expect to be exploited by
underground methods.
a) Los Pelambres
Los Pelambres is 60% owned by the Group. The cut-off grade
applied to the determination of ore reserves is 0.42% copper
and for mineral resources is 0.35% copper. For 2015, the mineral
resource model has been updated with 120 drill holes for a total of
36,073 metres.
The decrease of 70.6 million tonnes in ore reserves is due principally
to depletion in the period and reflects the remaining capacity of the
existing tailing dams, limiting the amount of mineral resource that
canbe converted into ore reserves.
Mineral resources in the measured plus indicated categories
increased by 174 million tonnes while resources in the inferred
category decreased by 294 million tonnes, reflecting increased
information from new drill holes improving the confidence in the
Mineral Resource categories.
b) Centinela (Concentrates & Cathodes)
Centinela is 70% owned by the Group and consists of Centinela
Concentrates and Centinela Cathodes operations. The cut-off
grade applied to the determination of ore reserves for Centinela
Concentrates is 0.20% equivalent copper, with 0.15% copper used
as a cut-off grade for mineral resources. The cut-off grade used for
the Centinela Cathodes pits is as follows: Tesoro Central and Tesoro
North-East deposits is 0.41% copper for ore reserves and 0.31%
for mineral resources; the Mirador Oxides deposit is 0.30% copper
for ore reserves and 0.15% for mineral resources. The cut-off grade
applied to oxides contained in the Centinela Concentrates deposit
(processed separately as Run-of-Mine leach, or ROM) is 0.20%
copper for ore reserves and 0.15% copper for mineral resources.
For 2015 the mineral resource model has not been updated, Centinela
ore reserves decreased by a net 61.7 million tonnes after depletion
of 55 million tonnes, and the mineral resources by a net 129 million
tonnes. The decrease is mainly in Esperanza and Esperanza Sur due
to updates to the economic parameters in the period. The Centinela
Cathodes ore reserves are made up of 83.3 million tonnes at 0.62%
copper of heap-leach and 105.2 million tonnes at 0.29% copper of
ROM ore.
c) Antucoya
Antucoya is 70% owned by the Group. The cut-off grade applied
to the determination of ore reserves is 0.16% copper, with 0.15%
copper used as a cut-off grade for mineral resources.
During 2015, Antucoya began the operations ramp up, with
12 million tonnes ore depletion. Ore reserves have increased
by 14 million tonnes mainly due to changes in the density
model. Mineral Resources have increased by 50 million tonnes

due to changes in economic assumption and changes to the
geometallurgical model.
d) Encuentro
Encuentro is 100% owned by the Group. The cut-off grade applied to
the determination of mineral resources for both oxides and sulphides
is 0.15% copper.
For 2015, the mineral resource model has been updated by
refinement of the resource model without additional drill holes.
The decrease of 106 million tonnes in Mineral Resources is mainly
due to changes in economic assumptions.
During 2015, after a feasibility study, 115.6 million tonnes of oxide
mineral resource were converted to ore reserves.
e) Michilla
During 2015, Michilla depleted 2.1 million tonnes and has initiated
closure activities.
f) Polo Sur
Polo Sur is 100% owned by the Group. The cut-off grade applied
to the determination of mineral resources for both oxides and
sulphides is 0.20% copper. For 2015, the mineral resource
geological model has been updated with 17 drill holes for a total
of5,354 metres. The increase of 208 million tonnes in resources is
duemainly to improved continuity in the resource model, achieved
byremodelling the previously separated two main ore bodies into
one continuous model.
g) Penacho Blanco
Penacho Blanco is 51% owned by the Group. The cut-off grade
applied to the determination of mineral resources for both oxides
andsulphides is 0.20% copper.
For 2015, the mineral resource geological model has been updated
by refinement of resource model without addition drill holes.
The resource model decreased slightly 0.4 million tonnes due
principally toeconomic assumption.
h) Mirador
Mirador is 100% owned by the Group. A portion of the Mirador
Oxides is subject to an agreement between the Group and
Centinela, whereby Centinela purchased the rights to mine the
oxide ore reserves within an identified area. The ore reserves and
mineral resources for Mirador Oxides subject to the agreement
with Centinela are included in the Centinela Cathodes section.
The resources not subject to the agreement are reported in this
section. The cut-off grade applied to the determination of mineral
resources for oxides is 0.15% copper and for sulphides is 0.20%
copper. For 2015, the resource model has not been updated.
i) Paleocanal
Paleocanal deposit is covered by AMSA and Centinela mining
tenements shared in different proportions. Under these constraints
the Group owns 88.7% of Paleocanal. The cut-off grade applied to
the determination of mineral resources for oxides is 0.15% copper.
For 2015 the resource model has been updated with 71 drill holes
for a total of 6,258 metres. Paleocanal has been upgraded to
MineralResources in 2015.
Llano deposit is covered by AMSA and Centinela mining tenements shared in different proportions. Under these constraints the Group owns
71.1% of Llano. The cut-off grade applied to the determination of mineral resources for oxides is 0.15% copper. For 2015, the resource model
has been updated with 47 drill holes for a total of 7,514 metres. Llano has been upgraded to Mineral Resources in 2015.
OVERVIEW
j) Llano
k) Los Volcanes
Los Volcanes is 51% owned by the Group. The cut-off grade applied to the determination of mineral resources for both oxides and sulphides
is0.20% copper.
l) Twin Metals Minnesota LLC

At year end the Group had an 82.9% interest in Twin Metals Minnesota LLC (Twin Metals), with the remaining percentage held by others.
During 2015, Antofagasta acquired 100% of Duluth Metals and as a result of this a 100% interest in Twin Metals. Total Mineral Resources did
not change from 2014 Statement; however for the Group, the attributable copper increased.
STRATEGIC REPORT
For 2015, the mineral resource model has been updated with two extensions of previous drill holes, and additional assaying carried out to
complete legacy data, for a total of 1,985 metres. The increase of 622 million tonnes in mineral resources is due principally to updated the
resource model and updates to the economical parameters used in the resource pit shell.
Twin Metals has a 70% interest in the Birch Lake Joint Venture (BLJV) which holds the Birch Lake, Spruce Road and Maturi Southwest
deposits, as well as a portion of the main Maturi deposit. The prices used for the Twin Metals resource estimate remain unchanged from 2014.
GOVERNANCE
The cut-off grade applied to the determination of mineral resources is 0.3% copper, which when combined with credits from nickel, platinum,
palladium and gold, is deemed appropriate for an underground operation. In the resource table TPM (Total Precious Metals) refers to the
sum of platinum, palladium and gold values in grammes per tonne. The TPM value of 0.57 for the Maturi resource estimate is made up of
0.15 g/tonne platinum, 0.34 g/tonne palladium and 0.08 g/tonne gold. The TPM value of 0.30 for the Maturi Southwest resource estimate is
made up of 0.08 g/tonne platinum, 0.17 g/tonne palladium and 0.05 g/tonne gold. The TPM value of 0.70 g/tonne for the Birch Lake resource
estimate is made up of 0.19 g/tonne platinum, 0.41 g/tonne palladium and 0.10 g/tonne gold. The Spruce Road resource estimate does not
include TPM values as they were not assayed.
m) Zaldvar
n) Other mineral inventory

In addition to the Mineral Resources noted above, the Group has interests in other deposits located in the Antofagasta Region of Chile, some
of them containing gold and/or molybdenum. At the moment they are in exploration or in the process of resource estimation. The potential
quantity and grade of each of the deposits is conceptual in nature, there has been insufficient exploration to define these deposits as mineral
resources, and it is uncertain if further exploration will result in the determination of a mineral resource. These include:
Tonnes range
(million tonnes)
Mineral deposit
Rencoret
Total
15
15
25
25
1.22
1.22
Grade range
(% Cu)
Number
drill
holes
Total
metres
1.00
1.00
31
31
8,300
8,300
Ownership
interest
(%)
100.0
(ii) In the El Abra District

Brujulina is a mineral deposit within a few kilometres of the El Abra ore body, located near Calama in the Antofagasta Region of Chile.
The Mineral Inventory of Brujulina deposit, owned 51% by the Group, is estimated to be in the range of 50 to 80 million tonnes with grades in
the range of 0.65% to 0.53% copper.
Tonnes range
(million tonnes)
Mineral deposit
Brujulina
Total
50
50
80
80
0.65
0.65
Grade range
(% Cu)
Number
drill
holes
Total
metres
0.53
0.53
159
159
15,300
15,300
Ownership
interest
(%)
51.0
o) Antomin 2 and Antomin Investors

The Group has an approximately 51% interest in two indirect subsidiaries, Antomin 2 Limited (Antomin 2) and Antomin Investors Limited
(Antomin Investors), which own a number of copper exploration properties in Chiles Antofagasta Region and Coquimbo Region.
These include, among others, Penacho Blanco, Los Volcanes (ex-Conchi) and Brujulina (see Note (k) above). Theremaining approximately 49%
of Antomin 2 and Antomin Investors is owned by Mineralinvest Establishment (Mineralinvest), a company controlled by the Luksic family.
Further details are set out in Note 36(e) to the financial statements.
Antofagasta plc 193
OTHER INFORMATION
(i) In the Michilla District

The Rencoret deposit, owned 100% by the Group.
Antofagasta acquired 50% of Minera Zaldvar Barrick Gold Corporation. The transaction was completed on 1 December 2015 and Antofagasta
became the operator of the mine. Reserves included in reserves pit shell considered a copper price of 3.0 US$/lb while the Mineral Resource
pit shell was 3.50 US$/lb.
Mining production and sales, cash cost reconciliation,

transport and water statistics
Production
Production and sales volumes,
realised prices and cash cost by mine
Copper
Los Pelambres
Centinela
Michilla
Antucoya
Zaldvar (attributable basis 50%)
Group total
Group weighted average (net cash cost)
Group weighted average
(excluding tolling charges and before by products)
Group weighted average (before by-products)
Cash cost at Los Pelambres comprise
Cash cost before by-product credits*
By-product credits (principally molybdenum and gold)
Net cash cost
Sales
2015
000
tonnes
2014
000
tonnes
2015
000
tonnes
2014
000
tonnes
363.2
221.1
29.4
12.2
4.4
630.3
391.3
266.5
47.0
0.0
0.0
704.8
366.0
224.4
30.8
9.2
5.5
635.9
386.0
270.9
46.1
0.0
0.0
703.0
Net cash costs
Realised prices
2015
US
2014
dollars US dollars
2015
US
2014
dollars US dollars
1.23
1.85
2.14
n/a
1.73
1.18
1.63
2.38
n/a
n/a
2.24
2.33
2.49
0.00
0.00
2.95
2.97
3.30
0.00
0.00
1.50
1.43
2.28
3.00
1.58
1.81
1.65
1.83
1.51
(0.28)
1.23
1.56
(0.38)
1.18
2.27
(0.42)
1.85
2.12
(0.49)
1.63
2015
US$m
2014
US$m
* Includes tolling charges of $0.27/lb and $0.21/lb for 2015 and 2014 respectively.
Cash cost at Centinela comprise

Cash cost before by-product credits
By-product credits (principally gold)
Net cash cost
* Includes tolling charges of $0.20/lb and $0.16/lb for 2015 and 2014 respectively.
Group cash cost reconciliation

Total Group operating cost
Less:
Total Depreciation and amortisation
Total (Loss)/gain on disposal
Elimination of non-mining operations
Corporate and other items Total operating cost
Exploration and evaluation Total operating cost
Railway and other transport services Total operating cost
Closure provision and other expenses not
included within cash cost
Total cost relevant to the mining operations cash cost
Copper sales volumes excluding Antucoya and Zaldvar (tonnes)
Cash cost excluding tolling charges and by-product revenues
($ per tonne)
Cash cost excluding tolling charges and by-product revenues
(cents per lb)
3,090.2 3,562.0
(576.1)
(10.2)
(581.7)
23.9
(67.6)
(101.9)
(94.0)
(99.2)
(167.5)
(97.3)
(75.4)
(76.5)
2,165.0 2,563.7
621,200 703,000
3,485
3,647
1.58
1.65
Sales
Realised prices
2015
US
dollars
2014
US
dollars
000
ounces
000
ounces
000
ounces
000
ounces
2.50
3.11
51.4
162.5
213.8
66.5
204.4
270.8
53.4
165.8
219.2
63.8
203.6
267.4
$/ounce
$/ounce
1,141
1,158
1,155
1,160
1,265
1,261
1,262
1,266
000
ounces
000
ounces
000
ounces
000
ounces
10.1
7.9
9.9
8.2
$/pound
$/pound
5.7
6.7
11.0
11.4
Q1
Q2
Q3
Q4
2015
Full year
2014
Full year
146.4
147.9
57.4
59.3
2.1
1.9
2.5
1,252
7.6
156.9
142.3
55.1
46.8
2.6
2.5
2.6
1,184
6.6
157.0
165.6
45.7
55.3
2.6
2.6
2.1
1,107
4.8
169.9
180.3
55.7
57.9
2.8
2.8
2.0
1,077
4.3
630.3
635.9
213.9
219.2
10.1
9.9
2.3
1,155
5.7
704.8
703.0
270.9
267.4
7.9
8.2
3.0
1,262
11.0
1.83
1.43
1.93
1.60
1.67
1.42
1.65
1.38
1.81
1.50
1.83
1.43
151.8
0.69
87.0
78.8
79.9
0.02
81.3
2.1
1.9
11.3
12.4
1.60
1.27
181.5
0.66
86.1
90.6
83.5
0.02
80.1
2.6
2.5
11.0
10.1
1.73
1.44
169.7
0.72
89.2
96.2
98.9
0.02
83.8
2.6
2.6
13.2
13.6
1.32
1.08
170.2
0.72
89.3
97.6
103.8
0.02
76.6
2.8
2.8
15.9
17.3
1.40
1.15
168.2
0.70
87.9
363.2
366.0
0.02
80.4
10.1
9.9
51.4
53.4
1.50
1.23
176.3
0.70
89.4
391.3
386.0
0.02
83.8
7.9
8.2
66.5
63.8
1.56
1.18
LME average
Gold
Los Pelambres
Group total
Market average price
Molybdenum
Los Pelambres
Market average price
Semiannual information
Group Total
Total copper production volume (000 tonnes)
Total copper sales volume (000 tonnes)
Total gold production volume (000 ounces)
Total gold sales volume (000 ounces)
Total molybdenum production volume (000 tonnes)
Total molybdenum sales volume (000 tonnes)
Weighted average realised copper price (dollars per pound)
Realised gold price (dollars per ounce)
Realised molybdenum price (dollars per pound)
Weighted average cash costs (dollars per pound)
before by-product credits

net of by-product credits
Los Pelambres (60% owned)
Daily average ore treated (000 tonnes)

Average ore grade (%)
Average recovery (%)
Copper production (000 tonnes)
Copper sales (000 tonnes)
Average moly ore grade (%)
Average moly recovery (%)
Molybdenum production (000 tonnes)
Molybdenum sales (000 tonnes)
Gold production (000 ounces)
Gold sales (000 ounces)
Cash costs before by-product credits (dollars per pound)
Net cash costs (dollars per pound)
Antofagasta plc 195
OTHER INFORMATION
2014
000
tonnes
2015
000
tonnes
GOVERNANCE
2014
000
tonnes
STRATEGIC REPORT
2015
000
tonnes
OVERVIEW
Production
Mining production and sales, cash cost reconciliation, transport and water statistics
Q1
Q2
Q3
Q4
2015
Full year
2014
Full year
Centinela Concentrate (70% owned)

Copper production (000 tonnes)
Average gold ore grade (g/tonne)
Average gold recovery (%)
Gold production (000 ounces)
Gold sales (000 ounces)
74.7
0.71
88.0
38.4
37.8
0.3
78.8
46.1
46.9
82.9
0.62
86.6
39.9
32.8
0.3
71.6
44.1
36.7
85.9
0.51
84.2
31.9
39.7
0.2
69.8
32.5
41.7
93.3
0.50
83.0
34.9
35.4
0.2
68.0
39.8
40.6
84.2
0.58
85.5
145.2
145.6
0.2
72.3
162.5
165.8
85.8
0.65
88.2
172.8
178.8
0.3
74.7
204.4
203.6
Centinela Cathodes (70% owned)

Copper production heap-leach (000 tonnes)
Copper production total (000 tonnes)
25.4
1.17
70.6
19.2
21.9
21.8
26.2
0.96
64.8
15.2
18.1
18.2
25.0
0.97
71.1
15.7
18.7
19.0
25.0
0.85
69.6
14.3
17.2
19.8
25.4
0.98
68.9
64.4
75.9
78.8
25.2
1.31
70.5
83.6
93.8
92.1
Centinela (70% owned)

Cash costs before by-product credits (dollars per pound)
Net cash costs (dollars per pound)
2.06
1.58
2.22
1.77
2.36
2.02
2.47
2.08
2.27
1.85
2.12
1.63
Michilla (99.9% owned)

Copper production heap-leach (000 tonnes)
Copper production total (000 tonnes)
Copper cathodes sales volume (000 tonnes)
Cash costs (dollars per pound)
6.8
1.00
78.1
5.6
7.3
8.4
2.48
7.1
1.35
79.3
6.0
8.3
7.8
2.04
6.80
1.43
78.9
6.1
8.0
8.0
2.06
2.90
1.35
74.0
4.4
5.8
6.7
1.97
5.9
1.28
78.2
22.1
29.4
30.8
2.14
12.2
1.13
79.5
40.1
47.0
46.1
2.38
1,714
1,693
1,482
1,742
6,805
7,302
Semiannual information
Transport (100% owned)

Total tonnage transported (000 tonnes)
Aguas de Antofagasta S.A., a wholly owned subsidiary

of the Group operating the water concession in Chiles
Antofagasta Region that wassold in June 2015.
Duluth
Duluth Metals Limited, a wholly owned subsidiary of

Antofagasta plc acquired on 28 January 2015 through
which the Group holds the Twin Metals Project.
ADR
American Depositary Receipt.
EBITDA
AIFR
All Injury Frequency Rate.
Earnings Before Interest, Tax, Depreciation

and Amortisation.
Alto Maipo
Alto Maipo SpA, a 40%-owned associate of the Group

incorporated in Chile, which owns the Alto Maipo
hydroelectric project in the upper section ofthe Maipo
River in Chile.
ECONSSA
AMSA
Antofagasta Minerals S.A., a wholly owned subsidiary

of the Group incorporated in Chile,
which acts as the corporate centre for the
mining division.
Empresa Concesionaria de Servicios Sanitarios S.A.,

the Chilean state-owned company which previously
operated the regulated and non-regulated water
distribution business in Chiles Antofagasta Region
(formerly known as ESSAN).
EIA
Environmental Impact Assessment.
El Arrayn
Parque Elico el Arrayn SPA, a 30%-owned associate

of the Group that operates a wind-power plant
providing up to 40MW of electricity to Los Pelambres.
The Annual Report and Financial Statements of

Antofagasta plc.
El Tesoro
Antucoya
Minera Antucoya S.A., a 70%-owned subsidiary ofthe

Group incorporated in Chile.
Known as Centinela Cathodes following the creation

of Centinela.
ENAP
ATI
Antofagasta Terminal Internacional S.A.,

a30%-owned associate of the Group incorporated in
Chile and operating the port in the city of Antofagasta.
Empresa Nacional del Petrleo, the 50% joint venture

partner of the Group in Energa Andina S.A.
Encuentro
Copper oxide and sulphide prospect located in

the Centinela Mining District, formerly known
as Caracoles.
Energa Andina
Energa Andina S.A., a 50%-owned joint venture entity

of the Group incorporated in Chile.
Australian currency.
Banco de Chile
Banco de Chile, a subsidiary of Quienco.
Barrick Gold
Barrick Gold Corporation, incorporated in Canada,

the joint venture partner of the Group in Tethyan
and Zaldvar.
EPS
Earnings per share.
Esperanza
Known as Centinela Concentrates following the

creation of Centinela.
Capex
Capital expenditure(s).
Esperanza Sur
Cash costs
A measure of the cost of operational production

expressed in terms of US dollars per pound of
payable copper produced. Cash costs are stated
net of by-product credits and include tolling charges
for concentrates for Los Pelambres and Centinela
Concentrates. Cash costs exclude depreciation,
financial income and expenses, hedging gains and
losses, exchange gains and losses and corporation tax.
Copper prospect located in the Centinela Mining

District. Formerly known as Telgrafo.
ESSAN
Empresa de Servicios Sanitarios S.A., former name

of ECONSSA.
ETF
Exchange Traded Fund.
EU
European Union.
FCA
Financial Conduct Authority.
FCAB
Ferrocarril de Antofagasta a Bolivia, the Chilean

name for the Antofagasta Railway Company plc, a
wholly owned subsidiary of the Group incorporated
in the UK and operating a rail network in Chiles
Antofagasta Region.
Compaa de Cerveceras Unidas S.A., an associate

of Quienco.
CDP
Carbon Disclosure Project.
Centinela
Minera Centinela S.A., a 70%-owned subsidiary of the

Group incorporated in Chile, that holds the Centinela
Concentrates (formerly Esperanza) and Centinela
Cathodes (formerly El Tesoro) operations.
Centinela
Mining District
Copper district located in the Antofagasta Region of

Chile, where Centinela is located. Formerly known as
the Sierra Gorda district.
CGU
Cash-Generating Unit.
Government
The Government of the Republic of Chile.
Chilean peso
Chilean currency.
Group
Comex
The commodity exchange, the primary market

for trading metals such as gold, silver, copper
and aluminium.
Antofagasta plc and its subsidiary companies and

joint ventures.
Hedge
accounting
Companies
Act 2006
Principal legislation for United Kingdom company law.
Company
Antofagasta plc.
Continental water
Water that comes from the interior of land masses

including rain, snow, streams, rivers, lakes
and groundwater.
Accounting treatment for derivatives financial

instrument permitted under IAS 39 Financial
Instruments: Recognition and Measurement, which
recognises the offsetting effects on profit or loss of
changes in the fair values of a hedging instrument and
the hedged item.
IAS
International Accounting Standards.
IASB
International Accounting Standards Board.
ICMM
International Council on Metals and Mining.
IFRIC
International Financial Reporting

Interpretations Committee.
IFRS
International Financial Reporting Standards.
Inversiones
Hornitos
Inversiones Hornitos S.A., a 40%-owned associate

of the Group incorporated in Chile which owns the
150MW Hornitos thermoelectric power plant in
Mejillones in Chiles Antofagasta Region.
Corporate
Governance
Code
Directors
The UK Corporate Governance Code is a set of

principles of good corporate governance, most of
which have their own set of more detailed provisions
published by the Financial Reporting Council and most
recently updated in September 2014.
The Directors of the Company.
FTSE All-Share Index A market-capitalisation weighted index representing

the performance of all eligible companies listed on the
London Stock Exchanges main market.
GAAP
Generally Accepted Accounting Practice or Generally

Accepted Accounting Principles.
GHG
Greenhouse Gas.
Antofagasta plc 197
OTHER INFORMATION
CCU
Australian
dollars
GOVERNANCE
Annual report
STRATEGIC REPORT
ADASA
OVERVIEW
Business, financial and accounting
IVA
Impuesto al Valor Agregado, or Chilean Value

AddedTax (Chilean VAT).
Tesoro Central and

Tesoro Noreste
Copper oxide deposits that form part of the

Centinela operation.
Key Management
Personnel
Persons with authority and responsibility for planning,

directing and controlling the activities ofthe Group.
Tethyan
Tethyan Copper Company Limited, a 50-50 joint

venture with Barrick Gold incorporated in Australia.
KPI
Key performance indicator.
TSR
LBMA
London Bullion Market Association.
Total Shareholder Return, being the movement in the

Companys share price plus reinvested dividends.
LIBOR
London Inter Bank Offer Rate.
LME
London Metal Exchange.
Los Pelambres
Minera Los Pelambres S.A., a 60%-owned subsidiary

ofthe Group incorporated in Chile.
Twin Metals
Minnesota
Project
A copper, nickel and platinum group metals (strategic

metals) underground-mining project located in northeastern Minnesota.
UK
United Kingdom.
UKLA
United Kingdom Listing Authority.
US
United States.
US dollars
United States currency.
Zaldvar
Compaia Minera Zaldvar SpA, a 50-50 joint venture

with Barrick Gold Corporation, which operates the
Zaldvar copper mine in Chile.
LSE
London Stock Exchange.
LTIFR
Lost Time Injury Frequency Rate.
LTIP
Long Term Incentive Plan which the Groups CEO,

Executive Committee and the other senior managers
participate in.
Madeco
Madeco S.A., a subsidiary of Quienco.
Marubeni
Marubeni Corporation, the Groups 30% minority

partner in Centinela and Antucoya.
Michilla
Minera Michilla S.A., a 99.9%-owned subsidiary

ofthe Group incorporated in Chile.
Mirador
Copper oxide deposit that forms part of the

Centinela operation.
Platts
A provider of energy and metals information and

source of benchmark price assessments.
PPA
Power Purchase Agreement.
Provisional
pricing
A sales term in several copper and molybdenum

concentrate sale agreements and cathodes sale
agreements that provides for provisional pricing of
sales at the time of shipment, with final pricing being
based on the monthly average LME copper price
or monthly average molybdenum price for specific
future periods, normally ranging from 30 to 180 days
after delivery to the customer. For the purposes of
IAS 39, the provisional sale isconsidered to contain
an embedded derivative (iethe forward contract for
which the provisional sale is subsequently adjusted)
that is separated from the host contract (ie the sale of
metals contained in the concentrate or cathode at the
provisional invoice price less tollingcharges deducted).
Quienco
Quienco S.A., a Chilean financial and industrial

conglomerate under the control of the Luksic family
and listed on the Santiago Stock Exchange.
Ramsar
Convention
International treaty for the conservation and

sustainable utilisation of wetlands.
Realised prices
Effective sale price achieved comparing revenues

(grossed up for tolling charges for concentrate) with
sales volumes.
Reko Diq
Reko Diq is a substantial copper-gold porphyry district

in south-west Pakistan. The Groups interest was held
through Tethyan.
Run-of-river
A type of hydroelectric plant using the flow of a river

as it occurs and having little or no reservoir capacity.
SERNAGEOMIN
Servicio Nacional de Geologa y Minera, a government

agency that provides geological and technical advice
and regulates the mining industry in Chile.
SHFE
Shanghai Futures Exchange.
Sterling
UK currency.
SVS
Superintendencia de Valores y Seguros de Chile, the

Chilean securities regulator.
Telgrafo
The former name of Esperanza Sur.
Mining industry
Brownfield project
A development or exploration project in the vicinity

ofan existing operation.
By-products
(credits in copper
concentrates)
Products obtained as a result of copper processing.

Los Pelambres and Centinela Concentrates receive
credit for the gold and silver content in the copper
concentrate sold. Los Pelambres also produces
molybdenum concentrate.
Concentrate
The product of a physical concentration process, such

as flotation or gravity concentration, which involves
separating ore minerals from unwanted waste rock.
Concentrates require subsequent processing (such
as smelting or leaching) to break down or dissolve
the ore minerals and obtain the desired elements,
usually metals.
Contained copper
The proportion or quantity of copper contained

inagiven quantity of ore or concentrate.
Copper cathode
Refined copper produced by electrolytic refining

ofimpure copper by electrowinning.
Cut-off grade
The lowest grade of mineralised material considered

economic to process and used in the calculation
of ore reserves and mineral resources.
Flotation
A process of separation by which chemicals in solution

are added to materials, some of which are attracted to
bubbles and float, while others sink. This results in the
production of concentrate.
Grade A
copper cathode
Highest-quality copper cathode (LME registered

and certified in the case of Centinela Cathodes
and Michilla).
Greenfield project
The development or exploration of a new project

atapreviously undeveloped site.
Heap-leaching
A process for the recovery of copper from ore.

The crushed material is laid on a slightly sloping,
impermeable pad and leached by uniformly trickling
(gravity fed) chemical solution through the beds to
ponds. The metal is then recovered from the solution
through the SX-EW process.
JORC
The Australasian Joint Ore Reserves Committee.
Leaching
The process by which a soluble mineral can be

economically recovered by dissolution.
Life-of-Mine (LOM) The remaining life of a mine expressed in years,

calculated by reference to scheduled production rates
(ie comparing the rate at which ore is expected to be
extracted from the mine to currentdefined reserves).
Currency abbreviations
MW
US dollar.
$000
Thousand US dollars.
$m
Million US dollars.
Megawatts (one million watts).
Pound sterling.
Net cash cost
Gross cash cost plus by-product credits.
000
Thousand pounds sterling.
Open pit
Mine working or excavation that is open to

the surface.
Million pounds sterling.
Rock from which metal(s) or mineral(s) can be

economically and legally extracted.
Pence sterling.
C$
Canadian dollar.
C$m
Million Canadian dollars.
Ch$
Chilean peso.
Ch$000
Thousand Chilean pesos.
Ch$m
Million Chilean pesos.
A$
Australian dollar.
A$000
Thousand Australian dollars.
A$m
Million Australian dollars.
Ore
Ore grade
Ore reserves
Payable copper
Part of Mineral Resources for which appropriate

assessments have been carried out to demonstrate
that at a given date extraction could be reasonably
justified. These include consideration of and
modification by realistically assumed mining,
metallurgical, economic, marketing, legal,
environmental, social and governmental factors.
Different kinds of ore containing copper. Oxide ore
occurs on the weathered surface of ore-rich lodes
and normally results in the production of cathode
copper through a heap-leaching process. Sulphide ore
comes from an unweathered parent ores process
and normally results in the production of concentrate
through a flotation process which then requires
smelting and refining to produce cathode copper.
Porphyry
A large body of rock which contains disseminated

chalcopyrite and other sulphide minerals. Such a
deposit is mined in bulk on a large scale, generally in
open pits, for copper and its by-product molybdenum.
Run-of-Mine
(ROM)
A process for the recovery of copper from ore,

typically used for low-grade ores. The mined,
uncrushed ore is leached with a chemical solution.
The metal is then recovered from the solution through
the SX-EW process.
Material extracted and piled for future use.
SX-EW
Solvent extraction and electrowinning. A process

for extracting metal from an ore and producing pure
metal. First the metal is leached into solution; the
resulting solution is then purified in the solventextraction process; the solution is then treated in an
electrochemical process (electrowinning) to recover
cathode copper.
Tailings dam
Construction used to deposit the rock waste which

remains as a result of the concentrating process after
the recoverable minerals have been extracted in
concentrate form.
TC/RCs
Treatment and refining charges, being terms used

to set the smelting and refining charge or margin for
processing copper concentrate and normally set either
on an annual or spot basis.
Tolling charges
Charges or margins for converting concentrate

into finished metal. These include TC/RCs, price
participation and price sharing for copper concentrate
and roasting charges for molybdenum concentrate.
tpd
Tonnes per day, normally with reference to the

quantity of ore processed over a given period of time
expressed as a daily average.
Underground mine
Natural or man-made excavation under the surface

ofthe ground.
lb
Pound.
oz
A troy ounce.
000 m3
Thousand cubic metres.
000 tonnes
Thousand metric tonnes.
1 kilogramme =
2.2046 pounds.
1 metric tonne =
1,000 kilogrammes.
1 kilometre =
0.6214 miles.
1 troy ounce =
31.1 grammes.
Chemical symbols
Cu
Copper.
Mo
Molybdenum.
Au
Gold.
Ag
Silver.
OTHER INFORMATION
Stockpile
Definitions and conversion

of weights and measures
The proportion or quantity of contained

copper for which payment is received after
metallurgical deduction.
GOVERNANCE
Oxide and
Sulphide ores
The relative quantity, or percentage, of metal content

in an ore body or quantity of processed ore.
STRATEGIC REPORT
OVERVIEW
Material of intrinsic economic interest occurring in

such form and quantity that there are reasonable
prospects for eventual economic extraction.
Mineral resources are stated inclusive of ore reserves,
as defined by JORC.
Mineral resources
Antofagasta plc 199
Annual General Meeting
Registrars
The Annual General Meeting will be held at Church House

Conference Centre, Deans Yard, Westminster, London SW1P 3NZ
at 10.00 am on Wednesday, 18 May 2016. The formal notice of the
Annual General Meeting and resolutions to be proposed are set out
inthe Notice of Annual General Meeting.
Computershare Investor Services PLC

The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
United Kingdom
Tel: +44 (0)37 0702 0159
www.computershare.com
London Stock Exchange listing andshare price

The Companys shares are listed on the London Stock Exchange.
The Companys American Depositary Receipts (ADRs) also trade
on the over-the-counter market in the United States. Each ADR
represents the right to receive two ordinary shares.
Share capital
Details of the Companys ordinary share capital are given in Note 31
to the financial statements.
Website
Antofagasta plcs annual and half-yearly financial reports, press
releases and other presentations are available on the Groups website
at www.antofagasta.co.uk.
Registered office
Cleveland House
33 King Street
London SW1Y 6RJ
United Kingdom
Tel: +44 20 7808 0988
Santiago office
Antofagasta Minerals
Av. Apoquindo 4001 Piso 18
Santiago, Chile
Tel: +562 2798 7000
Registered number
1627889
Additional information can be found in the Shareholder Information
section of the Notice of Annual General Meeting and on the
Groups website.
Directors
Jean-Paul Luksic
William Hayes
Gonzalo Menndez
Ramn Jara
Juan Claro
Hugo Dryland
Tim Baker
Manuel Lino Silva De Sousa-Oliveira (Ollie Oliveira)
Andrnico Luksic
Vivianne Blanlot
Jorge Bande
Company secretary
Chairman
Non-Executive
Non-Executive
Non-Executive
Non-Executive
Non-Executive
Non-Executive
Non-Executive
Non-Executive
Non-Executive
Non-Executive
Julian Anderson
Auditor
PricewaterhouseCoopers LLP
Solicitor
Clifford Chance LLP
Financial advisors
N M Rothschild & Sons
Stockbrokers
Bank of America Merrill Lynch
J.P. Morgan Cazenove
Banker
The Royal Bank of Scotland plc
Design and production

Radley Yeldar www.ry.com
Printing
CPI Colour
CPI Colour is FSC and ISO 14001 certified with strict procedures in place tosafeguard
theenvironment through all processes.
This Report has been printed on Essential Velvet which is a wood free coated paper and
FSC certified.
FSC Forest Stewardship Council. This ensures that there is an audited chain of custody from
thetree in the well-managed forest through to the finished document in the printing factory.
ISO 14001 A pattern of control for an environmental management system against which
anorganisation can be credited by a third party.
Visit www.antofagasta.co.uk
for up-to-date investor information
includingourpast financial results.
Antofagasta plc
Cleveland House
33 King Street
London
SW1Y 6RJ
United Kingdom

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Antofagasta Annual Report 2015

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Antofagasta plc

Annual report and financial statements 2015

Antofagasta is a Chilean copper mining group

Inside this report

Letter from the Chairman

Statement from the CEO

Creating value through

Key inputs and cost base

Strategy for the

The existing core business 40

Cautionary statement about

How the Board and its

Audit and Risk Committee 86

Relations with shareholders 112

Ore reserves and mineral

Glossary and definitions

Consolidated balance sheet 124

Directors and advisors

For more information go to Financial review.

For more information go to Financial review.

Net cash costs for the year, 4.9%

Net cash costs

For more information go to Financial review.

For more information go to Financial review.

Earnings per share fell 98.6% to

Earnings per share

Copper production of 630,300

Revenue of $3,394.6 million, 34.0%

The strategy for growing the Groups

The Groups flagship mine is in central Chile,

The Groups second largest operation is located

Further information on pages 40 to 42.

Organic and sustainable growth

Antucoya started production during 2015 and is

The Group acquired a 50% interest and assumed

Further information on page 46.

Further information on page 47.

2015 2016 forecast

1 Put on care and maintenance at the end of December 2015.

Progress international exploration activities

02 Antofagasta plc Annual report and financial statements 2015

2 Organic and sustainable growth

A debottlenecking project to increase daily ore

Further information on page 48.

Further information on page 48.

Combined rail and road

Further information on page 49.

Centinela Second Concentrator

This project to produce some 2,400 tonnes of

Construction of this project to provide additional

During the year the Group revised the approach

Further information on page 52.

The current resource base is triple the size of the

3 Growth beyond the core business

A copper, nickel and platinum group metals

Active exploration programme internationally and in

Further information on page 50.

The transport division operates the main

Further information on pages 50 and 51.

Throughout this period of lower copper prices Antofagasta

Mineral resources increased

(including ore reserves)

1 From continuing operations.

04 Antofagasta plc Annual report and financial statements 2015

For more information go to Financial review.

For more information go to Financial review.

For more information go to Financial review.

For more information go to Financial review.

Further information on pages 40 to 42.

Further information on page 46.

Further information on page 47.

Progress international exploration activities

Further information on page 48.

Further information on page 48.

Further information on page 49.

Further information on page 52.

Further information on page 50.

Further information on pages 50 and 51.

More on page 48.